18 November 2008

Boardroom row at Easyjet

Easyjet founder Stelios Haji-Iannou has refused to approve the airlineÃ¢â¬â¢s annual accounts, saying he disagrees with some of accounting policies relating to its acquisition of GB Airways.

In a statement attached to the airlineÃ¢â¬â¢s financial results to the end of September, he said: "I am concerned about the application of certain of the accounting policies adopted by the board in a way that I believe is at odds with current commercial realities and the macro-economic climate.

Ã¢â¬ÅâœTheir implications only became obvious to me this year because of the acquisition of GB Airways."

Stelios, who owns 27% of the airline, believes the Board have been wrongly optimistic about the value of Gatwick landing slots that came for free with GB Airways.

Ã¢â¬ÅâœGiven the fact that many airlines have already ceased operating from Gatwick I believe that slots will be freely available and hence it will be more prudent not to create Gatwick slots as an "intangible asset" on our own balance sheet this year,Ã¢â¬~ he said.

He also repeated demands for the payment of a dividend and for the appointment of two new non-executive directors of his choice, but he stressed that this was not part of an attempt to return to power.

But he outlined his continued support for the airlineÃ¢â¬â¢s chairman Colin Chandler.

The rest of the airlineÃ¢â¬â¢s Board said they were unanimous in their approval of the accounts.

See today's separate story 'Easyjet profits fall'

By Bev Fearis