Chandler exits early as EasyJet reports falling numbers

Published on Monday 6 April 2009 21:08

EASYJET chairman Sir Colin Chandler announced plans to step down from the company earlier than expected yesterday, as the budget carrier reported a drop in passenger numbers.

While Chandler, who turns 70 this year, had already outlined his intention to retire from the airline this year, his departure, which will now take place at the start of July, was expected to come in November, by which time EasyJet may have recruited a permanent successor.

The group softened the blow by confirming that Sir Michael Rake, the current chairman of BT, would become its deputy chairman "in early summer, prior to Sir Colin's departure".

David Michels, currently EasyJet's senior independent director, has agreed to serve as interim chairman from the start of July until a permanent successor to Chandler is appointed.

Yesterday's reshuffle follows a lengthy – and so far unresolved – dispute over the company's strategy, between its executives and Sir Stelios Haji-Ioannou, its founder and major shareholder.

Stelios, now a non-executive director, has demanded the company scale back its orders in the recession to cope with an expected fall in demand.

While Stelios is reportedly prepared to invoke rights to regain his role as chairman, yesterday's statement hinted at a thawing in the relationship between him and the rest of the board.

In a statement Stelios, whose family control close to 40 per cent of the company, thanked the outgoing chairman "for his leadership of the board and excellent years of service to EasyJet".

He added: "Having participated with other colleagues in these new appointments, I look forward to working more fully with Sir David and welcoming Sir Michael onto the board as we take EasyJet into the future."

Yesterday, the Luton-based airline revealed a further decline in demand as the recession hits holiday travel, with the number of passengers it carried in March 6.3 per cent lower than the same month last year at 3.49 million.

Meanwhile margins may have fallen further, with EasyJet's load factor – a measurement of how full its plane were during the period – down 2.8 percentage points to 84.7 per cent.

However, EasyJet said passenger numbers for the year to 31 March increased 11.5 per cent.

Shares in the airline closed up 2.7 per cent at 313.25p yesterday, their highest level since January.