(Alliance News) - easyJet PLC on Thursday said it has pushed back the deliveries of 24 aircraft until the end of financial 2022 and said it will call a general meeting of stakeholders following a requisition by its founder.
The FTSE 100 budget airline said that in an effort to preserve liquidity amid uncertainty arising from the Covid-19 outbreak, it has deferred ten aircraft deliveries scheduled for financial 2020 ending September 30, 12 deliveries for 2021, and two deliveries for 2022.
easyJet added that its agreement with Airbus also allows it to defer a further 5 deliveries in its financial year to the end of September 2022.
"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. Today 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 capital expenditure programme," said Chief Executive Johan Lundgren.
The company also said that it has 24 operating leases due for renewal in the next 16 months, noting that the upcoming renewals provide it with additional flexibility in relation to possible deferment and cancellation.
In a separate statement, easyJet said it will call a general meeting following a second requisition notice from founder Stelios Haji-Ioannou. On Wednesday, the company said it received notices from UBS Private Banking Nominees Ltd and Vidacos Nominees Ltd requisitioning a general meeting.
"The company understands that easyGroup Holdings Ltd is the ultimate beneficial holder of the shares being exercised by UBS Private Banking Nominees Ltd and Vidacos Nominees Ltd. The board of directors of the company has considered the requisition notices and confirms that it intends to call such a general meeting," easyJet said.
Haji-Ioannou threatened to personally sue executives at the easyJet if it spends "a penny" on a GBP4.5 billion order with plane manufacturer Airbus and fails to repay its GBP600 million government loan on time. He also renewed his demands on Wednesday for the company to remove Chief Finance Officer Andrew Findlay to "stop him from signing any more billion-pound cheques to Airbus every year".
Largest shareholder Stelios issued a second call for a meeting of the company's shareholders - after the first one was rejected - to vote on removing Findlay and another director, Andreas Bierwirth.
The stock closed 5.5% higher at 681.20 pence each on Thursday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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easyJet (EZJ)