(Alliance News) - easyJet PLC's founder and biggest shareholder Stelios Haji-Ioannou late on Thursday termed the company's statement regarding deferral of aircraft deliveries "as clear as mud" and warned that the company maybe in breach of UK market abuse regulations.
The FTSE 100-listed company separately on Thursday had said it will push back the deliveries of 24 Airbus SE aircraft until the end of financial 2022 and that it would call a general meeting of stakeholders following a requisition by Haji-Ioannou.
The airline had deferred 10 aircraft deliveries scheduled for financial 2020 ending September 30, 12 deliveries for 2021, and two deliveries for 2022.
In response, Haji-Ioannou, who owns 34% stake in easyJet, said directors of easyJet are in breach of the market abuse regulations by not disclosing the payments made and to be made from easyJet to Airbus in 2020.
"They are not being transparent with their investors and they are putting at risk GBP600 million of UK taxpayers’ money by paying Airbus during the next 6 months of zero revenues. I consider this to scandalous," Haji-Ioannou said.
He added: "On the eve of Good Friday and whilst the markets are still open they issue a statement to the stock market which is "as clear as mud" to puff up the share price for the short term. Although it is less than clear what "deal" Airbus and easyJet have cut with each other, the announcement only talks about "deferrals" of 24 out of 107 new orders. In addition they are not telling the investors how many Airbus aircraft will easyJet go ahead and pay Airbus for and how much per aircraft during the next 6 months using UK taxpayers money".
The easyJet founder plans to write to the UK Financial Conduct Authority to force the company's management to disclose actual payments from easyJet to Airbus.
Haji-Ioannou had previously 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".
He 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.
Shares in easyJet closed 5.5% higher at 681.20 pence each on Thursday afternoon in London.
By Tapan Panchal and Ife Taiwo
tapanpanchal@alliancenews.com; ifetaiwo@alliancenews.com
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easyJet (EZJ)