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By Rhys Jones
LONDON, April 17 (Reuters) - Low-cost airline easyJet said John Barton, chairman of British fashion retailerNext, would become its new chairman next month, as thecarrier plans to expand its fleet.
Barton, 68, who is also chairman of insurance group Catlin, will need to manage fractious relations with founderand largest shareholder Stelios Haji-Ioannou and ensure growthcontinues at Europe's second-largest budget airline bypassengers after Ryanair.
"One of Barton's most important jobs will be to engage withStelios because tensions between him and the board have been adistraction," said Espirito Santo analyst Gerald Khoo.
Stelios, whose family controls 37 percent of easyJet shares,quit the airline's board in 2010 after a row over strategy.Since then he has been critical of many of the airline's plans,including fleet expansion, executive pay and dividend policy.
Stelios, who founded the low-cost carrier in 1995, tried tooust outgoing chairman Rake last year but the attempt wasrebuffed by the airline's investors.
He accused Rake of having too many corporate roles and forweak governance at UK bank Barclays, where he is deputychairman. Barclays has suffered recent scandals over executivepay and an interest-rate rigging scandal.
Stelios has called on easyJet's management to slow the paceof new aircraft deliveries and focus on improving shareholderreturns. He has threatened to reduce his stake in easyJet if itplaces a large order to expand its fleet soon.
The relationship will be tested this year if easyJet, asexpected makes a large order, for new jets. EasyJet is in talkswith Europe's Airbus and U.S. rival Boeing abouta significant expansion of its fleet.
Barton, who will replace easyJet's outgoing chairman MikeRake on May 1, has chaired Next since 2006 and has also chairedBrit Insurance, telecommunications group Cable & WirelessWorldwide and insurance broker Jardine Lloyd Thompson.
