Stelios row with Fastjet takes off as airline attacks him for meddling
SIR Stelios Haji-Ioannou’s battle with African budget airline Fastjet, in which he is a major shareholder, has exploded into a major public row after the carrier accused him of “wholly inappropriate” meddling.
The entrepreneur responded by accusing Fastjet of “trying to cover the matter in a veil of secrecy”.
The entrepreneur, who helped set up Fastjet in the 1990s and retains a 12.6pc stake, published a list of his demands on Thursday for the troubled airline, including releasing detailed financial forecasts and data on how full its aircraft were.
Sir Stelios used a public letter from his easyGroup Holding vehicle to claim some of the flights were only 10pc full and cited concerns about the airline collapsing in the next few months.
However, Fastjet hit back yesterday, saying it was taking legal advice about the matter and would hold Sir Stelios’s business responsible for any damage caused by making his concerns public.
“Whilst the board of Fastjet welcomes constructive engagement with all shareholders, it cannot understand why easyGroup, acting as either a 12.6pc shareholder or brand owner, has published this particular letter without first raising its concerns with the company,” said Firstjet.
“The board considers the publication of this letter as wholly inappropriate and is taking legal advice on the matter. The company holds easyGroup responsible for any damage caused to the business by the publication of this letter.”
In response, Sir Stelios struck another blow, claiming “potential breach of a brand licence agreement is a very serious matter” and warning “easyGroup is both well advised on this occasion and very experienced in handling brand licensees”.
He also fired took another swing at Fastjet chairman Colin Child, saying he “should be taking proper legal advice with a view to complying with the agreement without trying to cover the matter in a veil of secrecy. As brand owner, easyGroup is concerned to pro- tect brand customers as well as its reputation from any future damage”.
Sir Stelios also called for other investors to join his campaign to see costs at the airline reduced and publication of passenger volumes resumed.
It marked just the latest twist in a spat between the entrepreneur and the carrier, but Fastjet shares plunged by more than 25pc – and closed down 17pc – as investors digested events.
Earlier this week his campaign to get rid of Fastjet chief executive Ed Winter and general counsel Krista Bates was successful.