{"id":95487,"date":"2021-10-04T17:14:22","date_gmt":"2021-10-04T15:14:22","guid":{"rendered":"https:\/\/www.monaco-tribune.com\/2021\/10\/easyjet-why-sir-stelios-haji-ioannou-is-gradually-withdrawing\/"},"modified":"2021-10-04T17:14:23","modified_gmt":"2021-10-04T15:14:23","slug":"easyjet-why-sir-stelios-haji-ioannou-is-gradually-withdrawing","status":"publish","type":"post","link":"https:\/\/www.monaco-tribune.com\/en\/2021\/10\/easyjet-why-sir-stelios-haji-ioannou-is-gradually-withdrawing\/","title":{"rendered":"EasyJet: Why Sir Stelios Haji-Ioannou is gradually withdrawing"},"content":{"rendered":"\n<p><strong>For the first time in its history, easyJet lost money over the past year.<\/strong><\/p>\n\n<p>Pandemics and travel do not sit well together. Especially for airlines, which were grounded for months. EasyJet, founded in 1995 by the father of Monegasque resident Sir Stelios Haji-Ioannou, was not spared. The pandemic, Brexit and internal disagreements at easyJet are all turbulence that are leading the Haji-Ioannou family to gradually withdraw from the company. Whilst in 2019 the family owned 33.7% of easyJet, by the end of September 2021 they will own only 15%.<\/p>\n\n<h2 class=\"wp-block-heading\">Supply has fallen <\/h2>\n\n<p>In terms of passenger numbers, easyJet is the second largest low-cost airline, behind Ryanair. During the summer, easyJet only offered 57% of its pre-crisis offer. The competition is fierce. Ryanair reached 75% of its offer in August, and other players are gaining in strength: WizzAir (with 85% of its offer during the summer) and Blue Air, <a href=\"https:\/\/www.monaco-tribune.com\/en\/2021\/09\/blue-air-launches-its-nice-london-flight-for-around-30-euros\/\">which has just acquired the Nice &#8211; London route<\/a>.<\/p>\n\n<p>Moreover, this is the first time since its inception that the company has lost money &#8211; namely \u20ac1 billion in its 2019-2020 financial year. For comparison, the company achieved \u20ac7,400 million in turnover and \u20ac400 million in net profit in the previous financial year. <\/p>\n\n<p>As a result, 4,500 employees were made redundant and its stock market value dropped by half compared to the beginning of the pandemic.<\/p>\n\n<h2 class=\"wp-block-heading\">Attempted buyout<\/h2>\n\n<p>The amount of aid for the post-Covid recovery is also a problem. Whilst Air France-KLM received 10 billion euros from France and the Netherlands, easyJet received 600 million euros from the UK.<\/p>\n\n<p>The president of easyJet, Johan Lundgren, declared in an interview with the <a href=\"https:\/\/www.lejdd.fr\/Economie\/johan-lundgren-pdg-deasyjet-au-jdd-non-aux-aides-detat-qui-faussent-la-concurrence-4059397\">JDD<\/a>: &#8220;When we see the amounts of aid granted to some, there are concerns of a distortion of competition. This is not fair and we will not accept it. We are against state aid that distorts competition.&#8221;<\/p>\n\n<p>In a disadvantaged position, easyJet&#8217;s direct competitor, Wizz Air, took up the matter and made a takeover bid. A proposal that was rejected. But where will the money come from to get the ship back on course?<\/p>\n\n<h2 class=\"wp-block-heading\" id=\"h-lev-e-de-fonds-aupr-s-des-actionnaires\">Fundraising from shareholders<\/h2>\n\n<p>EasyJet is counting on its existing shareholders to increase its capital by 1.4 billion. To encourage them to do so, the purchase price of a new share has been set at 48% below its usual price. <\/p>\n\n<p>These funds are to be used to develop their strategy for the post-Covid economic recovery. The aim is to acquire slots for take-off times at Europe&#8217;s major airports, something that the large airlines are already doing. Like Air France-KLM, which, however, has an advance ticket.<\/p>\n\n<p><strong>&gt;&gt; READ MORE: <\/strong><a href=\"https:\/\/www.monaco-tribune.com\/en\/2021\/09\/stelios-foundation-profits-from-the-latest-exhibition-to-go-to-a-charity\/\">Stelios Foundation: profits from the latest exhibition to go to a charity<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For the first time in its history, easyJet lost money over the past year. Pandemics and travel do not sit [&hellip;]<\/p>\n","protected":false},"author":54,"featured_media":95341,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[247,243],"tags":[],"post_sectags":[],"post_format":[2465],"class_list":["post-95487","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-news","format-in-brief"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.8 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>EasyJet: Why Sir Stelios Haji-Ioannou is gradually withdrawing<\/title>\n<meta name=\"description\" content=\"For the first time in its history, easyJet lost money over the past year. Pandemics and travel do not sit well together. Especially for airlines, which\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.monaco-tribune.com\/en\/2021\/10\/easyjet-why-sir-stelios-haji-ioannou-is-gradually-withdrawing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EasyJet: Why Sir Stelios Haji-Ioannou is gradually withdrawing - Monaco Tribune\" \/>\n<meta property=\"og:description\" content=\"For the first time in its history, easyJet lost money over the past year. Pandemics and travel do not sit well together. 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