April 5 (Reuters) - Stelios Haji-Ioannou, the founder of
easyJet Plc, has warned that he will not inject any
fresh equity into the airline it terminates a contract with
Airbus SE for 4.5 billion pounds ($5.50 billion),
according to a letter https://easy.com/wp/wp-content/uploads/2020-04-05-stelios-media-statement-on-easyjet-and-airbus-for-release-6april20-final.pdf
posted on EasyGroup's website.
In his letter, Haji-Ioannou has also called for removal of
easyJet's Chief Finaicial Officer Andrew Findlay, after earlier
calling for a board meeting on a vote to remove Andreas
Bierwirth as a director, which was rejected by easyJet.
"If this 4.5 billion pound liability to Airbus is preserved
– and not cancelled - by the easyJet board then, I regret to
report, easyJet will run out of money around August 2020,
perhaps even earlier," the founder said in his letter.
"I will certainly not be throwing good money after bad. For
the avoidance of doubt, I will not inject any fresh equity in
easyJet whilst the Airbus liability is in place."
He also stated that he will continue to call for the removal
of more directors every time the company delays the vote.
He also wants easyJet to reduce its fleet size to 250
aircraft from 350, adding that the airline will not need any
more additional new planes for many years to come.
($1 = 0.8175 pounds)
(Reporting by Juby Babu in Bengaluru; editing by Diane Craft)
easyJet (EZJ)