EasyJet shareholders back order for 135 Airbus aircraft
Airline has watered down no-frills approach in favour of model to draw more corporate traffic
EasyJet is planning to go toe-to-toe with former flag-carriers on short-haul routes
EasyJet shareholders backed an order for 135 Airbus SAS jets valued at $13 billion, cementing chief executive officer Carolyn McCall’s strategy of going toe-to-toe with former flag-carriers on short-haul routes.
Yesterday’s ballot followed months of opposition from founder and top investor Stelios Haji-Ioannou, who views the plan as misguided and harmful to dividend prospects.
Approval of the A320 deal bolsters Mr McCall’s plans to capture market share ceded by network carriers such as Air France and Lufthansa, and moves EasyJet further from its founder’s discount focus.
While the airline is second to Ryanair among Europe’s low-cost airlines, EasyJet has watered down its no-frills approach in favour of a model that offers ancillary services such as flexible tickets to draw corporate traffic. – Bloomberg