Haji-Ioannou’s row with Fastjet escalates

Haji-Ioannou’s row with Fastjet escalates

The representative of Sir Stelios Haji-Ioannou’s easyGroup Holdings quit the board of African budget airline Fastjet on Friday amid an escalating dispute.

The airline confirmed the departure of Tim Ingram “with immediate effect”.

He resigned hours after the airline hit back at accusations in a letter from Sir Stelios the previous day warning of the risk of an “insolvency event” at Fastjet.

The letter was prompted by a profit warning which led to the resignation of the carrier’s chief executive Ed Winter and another senior executive earlier last week.

Sir Stelios, who owns 12.6% of the airline through easyGroup Holdings, threatened to withdraw the licensing agreement struck with the airline in 2012 to use the Fastjet name in return for annual royalty payments.

Fastjet hit back, describing the publication of the letter related to the contractual relationship with the carrier as “wholly inappropriate,” adding that it was taking legal advice on the matter. 

“Whilst the board of Fastjet welcomes constructive engagement with all shareholders, it cannot understand why easyGroup, acting as either a 12.6% shareholder or brand owner, has published this particular letter without first raising its concerns with the company,” the airline said.

“The company holds easyGroup responsible for any damage caused to the business by the publication of this letter.”

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