EasyJet undergoes changes in the Boardroom

by Abbey on 17/12/09 at 10:22 am

EasyJet’s Chief Executive Andy Harrison recently quitted from the company. This is the third major executive board departure that occurred during this year. The cause of such leavings is a long executive board fight with the founder of EasyJet Haji-Ioannou.

According to Harrison, he wished to leave the company because of the budget and also find new challenges. But he did not say anything about his future plans.

It was decided that he would continue working in the company until June 30, 2010 despite the fact that his contract was revised in order to guarantee a smooth transition till a new chief executive would hold the post.

Also EasyJet said Michael Rake would accept the post from David Michels chairman from January 1, 2010. Since June Rake held the post of chairman and senior independent director. As for Michels, he was acting Chairman since the retirement of Colin Chandler in July.

The company is also looking for a chief financial officer as Jeff Carr quitted in May because Haji-Ioannou refused to approve the annual accounts of the last year.

A boardroom dispute occurred between the EasyJet founder and the board last year. Haji-Ioannou expressed his concerns about the growth strategy of EasyJet describing it very aggressive during the economic recession. As a result both the EasyJet founder and the board decided to set 7.5% of seat flown instead of 15%.

It is planned that the company will have 207 aircraft in its fleet by 2012.

Carr became the director of finance at bus and rail company FirstGroup PLC for that reason Bob Rothenberg held the post of non-executive director in August. Such appointment was done according to the request of Haji-Ioannou.

The company believes that the three major boardroom leavings that occurred in this year will not influence negatively on the company’s future.

“Andy Harrison has done a great job over the past four years and under his leadership, easyJet has developed into a truly pan-European airline operating Europe’s leading air transport network. EasyJet has a very strong senior management team and I look forward to being part of the continuing development of the business,” said Rake.

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