Easyjet vs Stelios vs Airbus

Is Easyjet well served by getting on the wrong side of a 30% shareholder in difficult times. Is the continued concentration on growth for the benefit of the shareholders that take all the risk, or for increasing managements incentive packages. There are enough samples of corporate greed where top management walks away with millions even though the results tanks and staff ends up getting laid off.

Easyjet management says an outside independent have looked at its dealings with Airbus and found nothing untoward. An independent company is only as independent as the one that pays their bill want them to be. Self-hiring an "independent" is a well known way of getting in ahead of an investigation instigated by somebody else.I am not saying anything will be hung on the current management of Easyjet, but smaybe something will stick on Airbus that could be used for negating the contract without penalties. Even more likely since they have already settled something similar.

Easyjet management's problem will be going forward with a toxic relationship with its biggest shareholder. It's not like Ryanair, or Norwegian up until their last vote, where all shareholders are very small and unconnected leaving it completely up to management to run the show.

Comments

Post a Comment

Popular posts from this blog

Is this the endgame for Norse, not necessarily

Norse have again announced that they need another capital injection. This time it might be different because last time they needed money the ceo and large owner Larsen said that it was the last time he injected more from own funds. Thi reminds me of the endgame ein Flyr where major investor Braathen said something similar in the autumn. When they agin needed money the following Januar nobody came forward and that was the end for an airline that could have been saved after the October refill with some major mangement changes that could have implemented even stricter cost savings, found income immediately and not paid out cash  immediately for possible charter incomes in the future. If Norse turns to more subleasing out of planes or charters they need to ensure that there will be upfront payments because it will mean upfront costs. Difficuolt concept for underfinanced charterers but rquired for an airline on the brink. Norse management also need to be based closer to where the action is.
Read more

When will Boeing's new chief get around to solving problems instead of letting new ones happen

So far the new Boeing CEO is not standing out as a problem solver. His first couple of months has more been a deepening of the Boeing rut. Maybe his immediate and well announced (partial) relocation to Seattle was not such a smart move after all. It certainly have given the machinists the guts to demand back stuff they gave up 10 years ago because Boeing then threatened to move more production away from the area. He needs to be careful with letting his division leutenants run the show by playing hardball with the unions at a time when Boeing needs to ramp up production, not let it grind to a halt altogether. They may have more experience from within Boeing and been seen by the previous CEO as leading lights but it is time for a new regime. The previous one created and proeeded with more trouble than it was worth for both customers and the company itself. Boeing might be too critical to the for all practical purposes duopoly in passenger plane making in the western world, but that deepl
Read more

Questionmarks over how Boeing saved costs when using plug instead of door

 What on the overwing exits stop them physically from being opened by a passenger with poor survival instincts during flight and did Boeing design engineers remove this safety mechanism from instructions for when installing a plug instead of a door. What other safety features did they omit on the grounds of cost saving in the design for using a door plug instead of a real emergency exit.  Normal cabin doors can't be opened during flight by design since they swing forward into the wind. There are few comments around on how this door (when installed) pivots. Is it up like the overwing exits or is it down since with such a small door there are probably no self inflating slide like the normal cabin doors. Or is it left or right. On the 737-200 the emergency exit overwing door came out loose and into the cabin. On the 737-NG-800 they swing up and out of the way. I doubt it just is pushed out and fall down because that could damage it during testing / maintenance. Would the overwing exit
Read more