Airlines founder plans a shareholder revolt

The airline industry has hardly been out of the news recently – whether the story is BA trying to gain legal decisions to outlaw the strikes being called by Unite, the continuing effects of the ash cloud, or major mergers between airlines like Continental and United in the US or BA and Iberia and BA in Europe. Another story over the weekend concerned the difficulty that can arise when the entrepreneurial founder of a business becomes a board member who has to share control with others.

Sir Stelios Haji-Iannou founded Easyjet, and later set up the more diversified Easygroup. He was, until Friday, a board member of the airline representing the interests of Easygroup, which has a 26% shareholding in Easyjet, but has become frustrated by what he sees as slow growth, lack of capital growth, and low dividend payouts to shareholders; Easyjet is seeking to expand their share of the European short-haul market from 7% to 10%. Sir Stelios however believes that they are not going about it in the right way, or providing enough reward to their owners; he said “How can you buy 200 aircraft with shareholders’ money and create no wealth for shareholders?”.

It is not unusual for those who have set up and nurtured a hugely successful business, like Easyjet, to share ownership and responsibility for strategy with others as the business expands beyond their control. Richard Branson reportedly considered buying back the 49% stake in Virgin Atlantic that is held by Singapore Airlines in 2007, but in any case has retained 51% control via the Virgin Group. There is, apparently, a long-running battle between Sir Stelios and the Easyjet board, which led to the resignation of Andy Harrison as Chief Executive in December, although the airline’s representatives say that the board’s decisions have been unanimous. He now has the scope to lead a move against the board without the conflict of interest that comes from being a board member. Could be used as another example of conflict between stakeholders, in an industry that seems rife with such conflicts at present.

Rising to the top of the milk [22 May 2012]
Shareholders join the Pressure Groups as Banks Feel the Heat from Stakeholders [27 Apr 2012]
Vodafone and Cable and Wireless Worldwide [25 Apr 2012]
Revision Presentation - Mission, Aims, Objectives and Stakeholders [7 Apr 2012]
Business legislation, Sunday trading, stakeholders and the Olympics [18 Mar 2012]
Simple solutions to everyday problems - Spanx [11 Mar 2012]
BUSS4 - Bullet point 5 the impact on stakeholders [17 Feb 2012]
Glenstrata - Glencore proposes merger with Xstrata [3 Feb 2012]
Leadership - Tough decisions to turn Starbucks around [29 Jan 2012]
Still more praise for the “John Lewis model” [17 Jan 2012]
Characteristics of an entrepreneur - Fil Adams-Mercer [13 Dec 2011]
The Rise and Fall and Rise of Gerald Ratner [27 Nov 2011]
Stakeholders argue over executive pay [23 Nov 2011]
How we made our millions: Michelle Mone and Richard Reed under the spotlight [10 Nov 2011]
Banana Smoothies & Interest Rates [5 Nov 2011]
Lets Teach Kids to be Entrepreneurs [3 Nov 2011]
How PepsiCo are trying to control diseconomies of scale [18 Oct 2011]
Car Wars - VW v Greenpeace [17 Oct 2011]
Applying for a Franchise [6 Oct 2011]
Lesson activity - the Dyson Debate [29 Sep 2011]
Stakeholders gripped by the bad news coming from BAE Systems [28 Sep 2011]
Revision Presentation - Risks and Rewards to Enterprise [7 Sep 2011]
Revision Presentation - Objectives of New Businesses [6 Sep 2011]
Revision Presentation - Enterprise Skills [6 Sep 2011]
Insights from an Entrepreneur - Lara Morgan (Pacific Direct) [5 Sep 2011]
Debunking the myths of entrepreneurs and startups - a must read [28 Aug 2011]
Entrepreneurs and Calculated Risks [25 Aug 2011]
The Case for Transformation [29 Jul 2011]
Tim Harford on why it its good for new businesses to fail [16 Jul 2011]
Shareholder power at Tesco [31 May 2011]
Does reform of corporate governance only mean ticking a list of boxes [5 May 2011]
Stakeholders - Every Little Helps [2 Apr 2011]
CSR - All Change at BP: New Era, New Responsibilities [12 Mar 2011]
Michael Porter - Shared Value and the Limitations of CSR [15 Feb 2011]
CSR - The Classic Milton Friedman Clip [5 Feb 2011]
The Year of Corporate Philanthropy [31 Jan 2011]
Insights from an Entrepreneur - Kirsty Henshaw (Worthenshaws) [8 Jan 2011]
From crisps to vodka - a profile of a down-to-earth entrepreneur [7 Jan 2011]
Introducing the “austerity” entrepreneurs [4 Jan 2011]
Bangers for Cash - Giveacar and Social Enterprise [4 Jan 2011]
Celebrating the Everyday Entrepreneurs [29 Dec 2010]
BUSS1 Revision Quiz - Sources of Finance for a Startup [13 Dec 2010]
Start-ups - a surge in new businesses post recession [2 Nov 2010]
Hilary Devey - Profile of an Inspirational Entrepreneur [22 Oct 2010]
How to start a toy shop [12 Oct 2010]
Insights from an Entrepreneur - Laura Tenison (JoJo Maman Bebe) [11 Oct 2010]
Insights from an Entrepreneur - Fraser Doherty (SuperJam) [10 Oct 2010]
Insights from an Entrepreneur - Will King (CEO King of Shaves) [10 Oct 2010]
The Frost Report does Stakeholders [9 Oct 2010]
Lesson Worksheet - Aims & Objectives of Business [29 Sep 2010]
Business structure in the UK - the rise of micro companies [21 Sep 2010]
Why we should encourage our students to start a business at university [1 Sep 2010]
Lesson Worksheet - Enterprise & Entrepreneurs [9 Aug 2010]
Essential business reading for the summer! [5 Aug 2010]
Entrepreneurs LIVE! 2010 - THE Enterprise Event for Students in 2010 [1 Jul 2010]
New BBC Resource: Start Up Stories [25 Jun 2010]
BUSS4 - Recession Strategy Lessons from Four Female Entrepreneurs [6 Jun 2010]
Rajeeb Dey to Speak at the 2010 Business Teacher National Conference [3 Jun 2010]
Silence is Golden for the Tesco Nuns [2 Jun 2010]
British vodka beats the world! [19 May 2010]
How to make a million before lunch! [12 Apr 2010]
Recession Survival Strategies Cost UK SMEs £16bn [31 Mar 2010]
Sustainable sourcing - Unilever and the Palm Oil Problem [27 Mar 2010]
BUSS4 and British Airways - a marriage made in heaven [1 Mar 2010]
Management pay is squeezed during the recession [27 Feb 2010]
Entrepreneurial success - Cath Kidston bucks the recession [25 Feb 2010]
Cash management becomes a strategic priority during the recent recession [22 Feb 2010]
AQA BUSS4 Section B Practice Question - BAA & the Heathrow Third Runway [7 Feb 2010]
Stakeholders in action - the Bournville demonstration [28 Jan 2010]
OECD stats on entrepreneurship [11 Jan 2010]
Stakeholders in the Trump Golf Battle [5 Jan 2010]
Video case study - technology transforms the checkout [27 Dec 2009]
School for Santas [7 Nov 2009]
Entrepreneur takes advantage of the postal strike [24 Oct 2009]
4 minutes with Stelios - insights into entrepreneurship [24 Oct 2009]
V-Water - from start up to exit [4 Oct 2009]
Meet the Young Entrepreneur of the Year 2009 [30 Sep 2009]
Emma Jones to speak at the Business Teacher National Conference 2010 [30 Sep 2009]
Born in the Storm - 4 Start-ups One Year On [16 Sep 2009]
Is a recession the perfect time to launch a technology start-up? [14 Sep 2009]
Icing on the cake for entrepreneurs [13 Sep 2009]
Patent Theft threatens enterprising inventors [3 Sep 2009]
Third Age Entrepreneurs drive start-up successes [1 Sep 2009]
Video case study: battling for survival in the restaurant trade [31 Aug 2009]
Banks lend more and charge more at the same time [3 Aug 2009]
Coffee Republic struggles with the daily grind [6 Jul 2009]
Entrepreneurial Brothers in Arms - The Egos Have Landed [6 Jul 2009]
A Mars A Day The Original Recipe Way [28 Jun 2009]
Planning for a winning team [24 Jun 2009]
Introducing Teen-Trepreneur [22 Jun 2009]
Can Paid Staff Be Entrepreneurs? [22 Jun 2009]
Apprentice Stars Lack Entrepreneurial Spirit [4 Jun 2009]
Mike Southon at the Business Teacher National Conference - Friday 19 June 2009 [4 Jun 2009]
Do The Dragons Get It Right? [1 Jun 2009]
From crisps to vodka - what else can you make from potatoes? [31 May 2009]
The Dragons got this one badly wrong - the entrepreneur that got away [29 May 2009]
Q&A - What are the main personal sources of finance an entrepreneur can obtain for a start-up? [27 May 2009]
Q&A - Should a start-up raise investment from outside investors? [27 May 2009]
Q&A - What are the main things to consider when obtaining finance for a start-up? [26 May 2009]
Q&A - How can a business handle a loss? [26 May 2009]

BUSINESS TEACHER RESOURCE NEWSLETTER
Get first news of business teaching resources, ideas and other materials from tutor2u. Over 9,400 business teachers from the UK and around the world receive our regular teacher email newsletters. Sign up for free here!