EasyJet FD under threat
Chris Walton, the finance director of troubled budget airline EasyJet, has come under pressure from shareholders to step down over the manner in which the company communicated its recent profit warnings.
The Independent reported that institutional shareholders have raised the issue with the airline’s non-executive directors although Sir Colin Chandler, chairman of EasyJet, has backed his FD, saying the company was not contemplating any board changes ‘at the moment’.
Last week EasyJet warned that rising fuel prices and fare cuts could hurt fiscal 2004 earnings sending the share price tumbling by 19% – the company’s share price has almost halved in value since the beginning of May.
EasyJet founder and its biggest shareholder Stelios Haji-Ioannou, who has a 41% stake in the airline, has also been critical of the manner in which the warnings have been handled saying there was ‘room for improvement’.