EasyJet to defer delivery of 24 Airbus planes, hold shareholder meeting

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

LONDON, April 9 (Reuters) – British airline easyJet EZJ.L on Thursday said it would defer the delivery of 24 Airbus AIR.PA jets and hold a shareholder meeting after the airline’s founder Stelios Haji-Ioannou stepped up a disagreement over the airline’s expansion plans.

The move comes a day after Airbus announced plans to cut jetliner production after the coronavirus epidemic triggered aviation’s worst industrial crisis and drastically reduced deliveries to cash-starved airlines.

The European manufacturer said it had received requests for postponements and deferrals into next year.

EasyJet’s biggest shareholder Haji-Ioannou demanded on Wednesday a shareholder vote to remove two directors, as part of his battle to try to force the British airline to cancel an order for 107 Airbus planes .

Haji-Ioannou says the new jets are useless given the crippling impact of the coronavirus pandemic on air travel and that their 4.5 billion pound ($5.5 billion) price tag threatens the firm’s survival.

The airline has been forced to ground its fleet due to travel restrictions in light of the spread of the coronavirus.

“Our industry is facing unprecedented challenges which require unprecedented action. As we have consistently said, we remain completely focused on improving short term liquidity and reducing expenditure across the business,” easyJet Chief Executive Johan Lundgren said in a statement.

“I am pleased to announce that we have agreed with Airbus to amend our delivery schedule by deferring the purchase of 24 aircraft, providing a significant boost to our cash flow and a vast reduction to our near-term capex programme.”

The airline said it would defer the delivery of 10 aircraft deliveries in the 2020 financial year, 12 aircraft deliveries in 2021 and 2 aircraft deliveries in 2022.

Exact dates for future deliveries of the deferred aircraft were still to be agreed, easyJet said.

Lundgren added that the airline had 24 leases up for renewal over the next 16 months, “which gives us another level of flexibility to respond to future demand.”

EasyJet said that following a notice to requisition a general meeting on behalf of Haji-Ioannou’s easyGroup, it intended to call a general meeting, but did not give a date.

Home of Science
Follow me

- Advertisement -




Shanghai Covid lockdown extended to entire cityon April 5, 2022 at 8:42 am

China's financial hub is now subject to indefinite restrictions after Covid cases hit a new high.Image source, ReutersChinese authorities have extended their lockdown of...

The new wave of India’s female Para-athletes forcing a shift in perspectiveon March 1, 2022 at 12:01 am

A new wave of Indian female Para-athletes are enjoying international success and forcing a change in attitudes in their home country.

Two-time champion Jones loses in Olympics first roundon July 25, 2021 at 3:54 am

Watch the final moments as two-time champion Jade Jones loses in her first match at the Tokyo Olympics to Kimia Alizadeh of the Refugee...

Tonga undersea cable needs ‘at least’ four weeks to repair: NZon January 19, 2022 at 4:17 am

Tonga's only undersea cable was severed in a volcanic eruption, severely crippling communications.Image source, Maxar TechnologiesA key undersea cable that was destroyed in a...

Italian Grand Prix: Charles Leclerc takes pole position for Ferrarion September 10, 2022 at 3:18 pm

Ferrari's Charles Leclerc takes pole position at the Italian Grand Prix ahead of Red Bull's Max Verstappen.Ferrari's Charles Leclerc takes pole position at the...
Home of Science
Follow me