Under the agreement, the LCC will pay Sir Stelio for the next 50 years an annual royalty of 0.25% of revenues, fixed at GBP3.9 million and GBP4.95 million in the first and second years respectively. In return, easyGroup will give up its right to appoint Directors to the airline's Board and Sir Stelios will surrender his right to appoint himself chairman. easyJet stated the agreement gave it “operational flexibility” and “commercial freedom” to grow its businesses.
Meanwhile, Baring Europe Select Manager Nick Williams, in an article in the FT Adviser, commented that while the economic situation in Ireland remains bleak, some shares in Irish companies are doing well, including Ryanair.
Mr Williams commented that while Ryanair is an Irish company, it is not affected by falling Irish air traffic as its route network is very pan-European, meaning that that despite continuing weakness in Irish air traffic the company is growing its passenger numbers and increasing load factors. Shares in Ryanair slipped 0.3% yesterday.
Air Berlin announces new chairman
Also in Europe, shares in Air Berlin gained 3.0% yesterday, as the carrier announced new executive appointments including the appointment of a new chairman of the board of directors, Dr Hans-Joachim Körber, and an executive VP sales scheduled services, which is part of plans to separate areas of responsibility in sales to sales in preparation for Air Berlin’s full membership of the oneworld alliance, which is due to take place at the start of 2012.
Selected LCCs daily share price movements (% change): 11-Oct-2010
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