Easyjet Row in the Boardroom

A boardroom row at British low-cost airline easyJet escalated on Tuesday as the company said its high profile founder and non-executive director Stelios Haji-Iannou had refused to approve its annual accounts.

In a statement attached to easyJet's full-year results, 27 percent shareholder Stelios said he disagreed with some of the airline's accounting policies relating to the recent acquisition of GB Airways.

Stelios also repeated demands for the payment of a dividend and for the appointment of two new non-executive directors of his choice, although he said his stance was not an attempt to return to power and backed current chairman Colin Chandler.

The dispute with Stelios, who had stepped down as chairman in 2002, emerged last week as he called for the payment of a dividend and a more cautious growth strategy.

"I regret to inform you that as a director of easyJet I am unable to approve the annual accounts," he said in Tuesday's statement, adding his disagreement related to the valuation of parts of recent acquisition GB Airways -- including aircraft and slots at Gatwick Airport near London.

"On a separate manner, we must pass a board resolution to plan to pay a dividend by, say, 2011 if the markets and the liquidity of the company allow," he added.

His demands came as easyJet said it expects to remain profitable in the year to September 2009, as it reported first quarter winter bookings ahead of last year while it was cutting costs and preserving its cash base.

It reported 2007/08 pretax profit down 35 percent to GBP123 million pounds (USD$183.4 million) for the year to the end of September.

"EasyJet delivered a good trading performance in the financial year ending September 2008... We recognise that economic conditions will be very difficult and easyJet is planning accordingly," chief executive Andy Harrison said in a statement.

The rest of the board support Harrison in the dispute with Stelios, the company said.

"EasyJet is well placed to emerge as a winner, due to our cost base, strong balance sheet, new fuel-efficient fleet and the quality of the easyJet network," Harrison said in a statement.

He added that the group's 315-aircraft plane order with Airbus was flexible, while the group's cash position stood at GBP863 million.