easyJet plc response to easyGroup

RNS Number : 6494N

easyJet PLC

05 September 2011

 

easyJet response to easyGroup

The board of easyJet plc confirms that it has received a request from easyGroup asking it to convene an extraordinary general meeting at which a resolution would be put forward to vote on the removal of Professor Rigas Doganis as a director of easyJet plc.

This is a further unnecessary and costly distraction which is damaging to the company's reputation and undermines investor confidence.  The Board believes that this resolution is not about removing Rigas Doganis as a director of easyJet but a clear attempt by a minority shareholder to inappropriately determine the composition of the Board and to override normal corporate governance protocols.

The board will write to shareholders in due course recommending that they vote against this resolution.

Sir Michael Rake, easyJet Chairman, commented on the easyGroup resolution:

"We will encourage shareholders to reject this resolution and to demonstrate that the Board has the support of the majority of shareholders. 

"We will continue to encourage easyGroup to meet with us in private to discuss their views on the business.  We have made repeated efforts to do so in recent months."

Furthermore, the Board wishes to reject and correct a number of inaccurate claims made repeatedly by easyGroup in recent weeks:

·    easyJet's fleet announcement of 4 January complied with all the relevant regulations

·    This announcement was for the exercising of options (agreed in 2007) for 15 new aircraft on terms substantially the same as those of previous easyJet Airbus orders

·    easyJet's Quarter 1 trading statement issued on 20 January was not a profit warning - the airline said at the time that, excluding the additional cost of fuel, its full year expectations remained unchanged.

·    easyJet's Quarter 3 update issued on 22 July showed the company performing well despite the challenging market and easyJet raised guidance for the year to 30 September 2011 for a pre-tax profit of between £200 million and £230 million

·    easyJet has confirmed that it plans to cap the size of its fleet for at least the next two winters

·    easyJet will look at its end of financial year balance sheet, trading outlook and cash position to see whether or not there should be a return over and above the 20% dividend the airline proposes to pay to shareholders

-Ends-

For further details please contact:

easyJet plc

Analysts:

Rachel Kentleton, Investor Relations                                        [phone]

Press:

Paul Moore, Communications                                                  [phone]

Edward Simpkins, Finsbury                                                     [phone]

[phone]

 

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