On Thursday, EasyJet said that a majority of its stockholders supported its plan to purchase 135 latest Airbus planes. The move directly defeated the company's estranged founder's efforts to prevent the deal.
EasyJet said that the investors who were in favor of the plan represented 57% of the company's stocks. They would acquire 100 new A320neo jets and 35 A320 aircraft. Buying additional 100 jets were also in their options.
The fleet expansion contract was considered to be large that the stockholder's vote was required. Also, the result needed to be approved by capitalists with more than 50% of the company's stocks.
Stelios Haji-Ioannou, EasyJet's founder, voted against the plan because he believed it would destroy the stockholder value. He also thought that the amount would be better spent on enhancing returns for the capitalists. This would be done through dividend or stock buybacks.
"The vote in favor of our new fleet arrangements will allow EasyJet to continue its successful strategy of modest, profitable growth and sustainable returns for our shareholders," the company's Chairman, John Barton, stated.
Join the Conversation