How can FT Alphaville possibly have missed this set of missives, recently published on the easyGroup corporate website?

Noted without further comment (except to say that the exchange is related to this FT piece):

From: Mark Odell
Sent: 10 May 2011 14:19
To: Stelios
Subject: comment re easyjet’s dividend policy

Hi Stelios

It’s been a while since we last spoke but I am temporarily at least back covering airlines for the FT. I have seen your statement this morning but i was wondering if you might have 5 minutes for quick chat as I was interested in hearing from you regarding your assertion about the “absurd” dividend policy in the 11 years since the IPO. I have to file the story by 4pm so if there was any chance of a call before then it would be much appreciated. I am on the number below or you can try my mobile.

many thanks

best

Mark

Mark Odell
Financial Times

From: “Stelios”
To: Mark Odell
Cc: “. All CDR Easy”, “Stelios”
Date: 10/05/2011 14:42
Subject: RE: comment re easyjet’s dividend policy

Mark

A company that is listed for 11 years and does not pay a single penny in dividends for its shareholders whilst buys 200 aircraft from one supplier is pursuing an absurd policy.

Do you disagree?

From: Mark Odell
Sent: 10 May 2011 15:11
To: Stelios
Subject: RE: comment re easyjet’s dividend policy

Thanks for the swift reply Stelios

Obviously I couldn’t possibly take a view on the right or wrongs of such a policy, other than to note that the LCC rationale for not paying out a dividend was that investors were buying into a growth stock – point noted about where the share price is now vs 11 years ago. What I was wondering was if you could remind for how many of those 11 years you were chairman and whether you proposed paying a dividend during your tenure (and had that overturned)?

best

Mark

Mark Odell

Financial Times

From: Stelios
Sent: 10 May 2011 15:20
To: Mark Odell
Cc: ‘. All CDR Easy’; ‘Michael Rake’; ‘Rachel Atkins’; Stelios
Subject: RE: comment re easyjet’s dividend policy

Mark

I can already see the influence of Airbus in your questions… welcome to the aerospace industry.

The only reason for this absurd policy on dividends was that more cash can go to Toulouse!

Zero dividends means more cash for Airbus.

Now, what exactly are you implying?

That I am two faced?

Have you checked when I stepped down from the Chair?

From: Mark Odell
Sent: 10 May 2011 15:36
To: Stelios
Cc: . All CDR Easy; Michael Rake; Rachel Atkins; Stelios
Subject: RE: comment re easyjet’s dividend policy

Hi Stelios

Firstly, i have covered aviation on and off for almost 20 years and remember well a coffee i had with you in Victoria station in 1993 when I was at Airline Business and you were thinking of setting up a low-cost carrier – I told you it sounded like a great idea.

Secondly, I am not implying anything, I was merely asking how long you were chairman of the board post-IPO as I couldn’t remember and I can’t pin it down, hence I was hoping for a quick chat with you. I know you were still chairman in 2002, would you mind refreshing my memory?

Many thanks

best wishes

Mark

Mark Odell

Financial Times

From: Stelios
Sent: 10 May 2011 15:49
To: Mark Odell
Cc: . All CDR Easy; Michael Rake; Rachel Atkins; Stelios
Subject: RE: comment re easyjet’s

I just realised that the ft.com share quote graph only goes back 5 years… short memory.

I stepped aside in November 2002.

The original order for 120 aircraft was delivered by 2005-6 and then Harrison bought some 80 more on much higher prices …I have been pushing for share buy backs and dividends since that time but it only became public in 2008.

The rest is well documented in press.

Every aircraft over and above the 160 the company had in 2008 has been destroying shareholder value flying on loss making routes and that is why the losses are the biggest ever for the 6 months.

Mike Rake is reading in copy and I did tell him yesterday on the phone that the company will become a take over target if the market cap stays at the same level as the cash pile.

The exchange — such as it is — ends there.

From an earlier Stelios comment on a Telegraph diary piece:

Here is Alistair worrying about what I say on my webpage …I wonder why if nobody reads it anyway?

Related link:
Greek chorus from Stelios does EasyJet a disservice – FT

 

This entry was posted by Joseph Cotterill on Tuesday, May 17th, 2011 at 18:18 and is filed under Capital markets, People. Tagged with easygroup, easyjet, Sir Stelios Haji-Ioannou. Edit this entry.