EasyJet founder resigns from airline's board

14th May 2010, Comments 0 comments

EasyJet founder Stelios Haji-Ioannou has resigned from the airline's board, the British group announced on Friday, amid a row over strategy.

He was joined in stepping down from the board by fellow non-executive director Bob Rothenberg.

"The stated reason for their resignation is that Sir Stelios Haji-Ioannou wishes to gain greater freedom to exercise EasyGroup's rights as a shareholder in the company to seek a change in the company's strategy," EasyJet said in a statement.

EasyGroup is the holding company of no-frills carrier EasyJet.

Haji-Ioannou is unhappy with EasyJet's plans to increase its number of planes while claiming that the company is not on course to improve shareholders' returns.

The row over strategy has already led to EasyJet chief executive Andy Harrison announcing his resignation. He is set to leave in June to be replaced by Carolyn McCall, who is stepping down as chief executive of the Guardian Media Group.

Earlier this week meanwhile, EasyJet lowered its full-year profits forecast after announcing that travel disruption caused by the volcanic ash cloud had cost it between 50 and 75 million pounds.

News that the cloud had cost it the equivalent of 58-87 million euros or 74-111 million dollars came as the carrier also said that its net losses had narrowed during the first six months of its financial year.

-- Dow Jones Newswires contributed to this story --

© 2010 AFP

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