Stelios prepares to launch fresh attack on EasyJet board

Stelios, who with his family still owns 38 per cent of the airline, has written to EasyJet’s chairman, Sir Mike Rake, making key demands including on future dividend policy at the budget airline.

In an e-mail at the weekend seen by The Scotsman, Stelios also accuses Rake of trying to turn Polys Haji‑Ioannou, his brother – and another big EasyJet investor – against him.

“In a biblical‑type move, you even tried to turn my own brother to vote against my EGM, but you were unsuccessful,” the e-mail said.

That EGM in September, to oust a non-executive director, Rigas Doganis, was eventually called off.

Stelios’s renewal of hostilities comes as the airline is expected to unveil a bumper set of results tomorrow, with profits of about £250m despite the tough environment for airlines. EasyJet has already flagged that it will announce a £150m special dividend this week and a maiden £40m ordinary dividend.

However, in his e-mail, which also went to seven of EasyJet’s other biggest shareholders, Stelios warns Rake that he will not support the re‑election of the EasyJet directors at next February’s AGM unless there are undertakings including bringing the dividend policy “in line with the FTSE 100 [index] to twice dividend cover”.

Stelios also demands no more aircraft orders (nor options) by EasyJet without a shareholder vote. “You are now paying more than double for each aircraft than what I negotiated in 2002 and at this cost per aircraft, each purchase destroys shareholder value,” Stelios writes.

He adds: “The next order should be with a fully transparent three-way tender with sealed bids between three manufacturers, all with the next engine technology currently not expected before 2016.”

Stelios says that he feels it is important that he and Rake agree on the key performance indicators “so management can be held accountable”