Stelios Haji-Ioannou, easyJet's founder and biggest shareholder, on Monday intensified his battle with the airline's management over a huge aircraft order with Airbus which he says it should cancel.
Mr Haji-Ioannou said that he had told the airline he would not provide it with any new equity until it terminates a £4.5 billion (Dh20bn) deal with Airbus. He said he tried to change the company's position by calling for the removal of two of its directors.
Stelios, as he is better known, says that the 107 planes on order are "useless", after the coronavirus pandemic brought air travel to an almost standstill. The huge bill for the planes puts easyJet's survival at stake, he said.
Airlines across the world are struggling to say afloat. Whole fleets are now grounded, including easyJet's 344 planes, owing to travel restrictions and plunging demand over fears of contagion.
Stelios said easyJet will run out of money by August and added he would not help it financially until the Airbus order is cancelled. He also said he wants easyJet to reduce its fleet size to 250.
Britain has told its airlines to raise new money from shareholders before it will consider helping them. While easyJet is taking advantage of government help schemes for businesses, it has not requested any specific state bailout.
Under UK company rules, Stelios's only way of influencing management's behaviour is to call for a shareholder meeting to vote for the removal of directors.
He plans to write to easyJet's chairman to call for two directors to be removed, adding chief financial officer Andrew Findlay to an earlier call for the removal of Andreas Bierwirth.
"Terminating the Airbus contract is the only chance current shareholders have to maintain any value in their shares," Stelios said.
Airbus has said the order from easyJet is firm, meaning binding, while the airline said its focus was on short-term liquidity to ensure its future.
"We believe that holding a general meeting would be an unhelpful distraction from tackling the many immediate issues our business faces," the company's spokeswoman said.
The budget airline, based in London, on Friday rejected Stelios's first call for a general meeting to remove Mr Bierwirth on what Stelios's team called a technicality, but a meeting, held electronically, will have to go ahead at some point, his spokesman said.
"I fully expect easyJet to follow the stipulations of the Companies Act 2006 and to call a meeting within a three-week period," said a spokesman for Mr Haji-Ioannou.
The Haji-Ioannou family owns about a third of easyJet's shares and Stelios has been a long-time critic of the airline's expansion plans.
Rooney's club record
At Everton Appearances: 77; Goals: 17
At Manchester United Appearances: 559; Goals: 253
Teachers' pay - what you need to know
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
