Top easyJet investors are backing a deal for up to 200 new aircraft despite opposition from founder and largest shareholder Sir Stelios Haji-Ioannou.
Six institutional investors with significant holdings in the budget carrier told the Financial Times they were willing to support a major order, which suggests Carolyn McCall, chief executive, has a reasonable chance of gaining approval for a deal.
Management must secure a simple majority of votes cast at a special shareholder meeting for large aircraft orders. With Sir Stelios’s family holding a 37% stake, the company has to obtain strong support from institutional investors on a large turnout.
The easyJet board has not yet made a final decision on whether to buy more aircraft from Airbus or Boeing.
But analysts expect the airline to place a multi-billion-dollar order for at least 100 aircraft and secure options to purchase a further 100.
One top 10 shareholder at easyJet, who declined to be identified, told the FT: “EasyJet has been a model company in terms of providing strong revenues and good returns. As long as there is growth, they should expand.”
Another said growth must be accompanied by improved returns, adding: “We would not want growth for the sake of it but it does seem sensible to expand the fleet.”
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