Aviation news analysis
50 SKY SHADES - World aviation news

EasyJet's founder says would oppose acquisitions after Monarch reports

Download: Printable PDF Date: 19 Apr 2016 12:19 categories:
EasyJet's founder says would oppose acquisitions after Monarch reports - Airlines publisher
Krista Kuznecova
Country: United Kingdom Aircraft: Airplanes Airline: EasyJet
Source: Reuters

European low-cost airline easyJet's founder and biggest shareholder Stelios Haji-ioannou would oppose any move by the company to make an acquisition, he said on Tuesday, following media reports that it was looking at making a bid for smaller rival Monarch.

The Sunday Times newspaper said that easyJet was eyeing Monarch Airlines, one of a number of stories about Monarch to emerge in recent days.

Another media report said that Monarch, the former holidays airline restructured by private equity investor Greybull Capital as a low-cost scheduled carrier after rescuing it in 2014, was looking at buying other European airlines.

Haji-ioannou, better known as Stelios, who founded the airline in 1995 and whose family still holds a 34 percent stake, said easyJet should stay clear of takeovers.

"My personal view as a shareholder is that easyJet should not do any acquisitions," he said in an emailed statement.

"They usually destroy shareholder value."

Stelios added, however, that as the owner of the "easy" brand, which includes hotels, buses and car hire, he would benefit from anything that increased easyJet's revenues because it would mean increased royalties for easyGroup, which he owns.

EasyJet declined to comment.

Since he quit easyJet's board in 2010 after a row over strategy, Stelios has been vocal in his criticism of the airline's plans, including fleet expansion, executive pay and dividend policy.

easyJet, Europe's second biggest budget airline behind Ryanair, had earlier declined to comment on the Monarch rumours.

Monarch, with just over 30 aircraft, would be a small deal in comparison to the 240-plus fleet of easyJet.

Cantor analyst Robin Byde said talk of the potential tie-up was plausible. He expected an offer for Monarch to have an enterprise value of about 400 million pounds, but warned that any deal would be scrutinised by competition authorities.

RBC analyst Damian Brewer added that easyJet may want to get its hands on Monarch to strengthen its position at London Gatwick, easyJet's biggest base, although Monarch's main base is London Luton.

"Monarch's Gatwick (runway) slots offer potential opportunity for easyJet if the company did not overpay," he said.

Any easyJet takeover of Monarch may or may not need shareholder approval depending on whether the deal was classified as a class 1 or class 2 transaction under UK rules.

Loading comments for EasyJet's founder says would oppose acquisitions after Monarch reports...


Bombardier Global 5500 and Global 6500 Business Jet Program on Schedule for Delivery in 2019

The Global 5500 and Global 6500 aircraft offer more range, larger cabins and a smoother ride than competitor aircraft Seventy per cent of total flight test hours complete, wit...

The dark side of aviation growth to be tackled in Asia and Europe

Despite a generally healthy condition of global aviation industry and its stable growth during last decade, challenging issues like growing fuel prices, raising competition among airlines and shrinkin...


Hong Kong-based Metrojet Limited (www.metrojet.com), a business aviation service provider with presence throughout Asia Pacific, is pleased to announce that its Maintenance, Repair and Overhaul (...

Royal Dutch Touring Club ANWB and Airbus sign framework contract for six H135s

Airbus Helicopters and air rescue operator Royal Dutch Touring Club ANWB, have signed a framework contract for up to six H135s with Helionix. Additionally, they have activated a first batch of th...