EasyJet faces float delay

By MATTHEW FLETCHER
Updated: 19:00 EST, 20 May 2000

EasyJet boss Stelios Haji-Ioannou may have to delay the partial float of his airline in a row over landing charges at Luton. Analysts are warning that he will have to reach an agreement with the airport, which is easyJet's main British base, before the September flotation, or risk investors spurning the share offer.

Haji-Ioannou is selling 25% of his airline, which is valued at about £500m in total. But he is embroiled in a high-profile row with Luton's owners, including Barclays and airport operator TBI, over plans to raise the carrier's landing fees from November.

One analyst said: 'EasyJet needs to settle this before it floats because investors are not going to buy if there is any uncertainty. An ongoing row will affect the price.'

Haji-Ioannou wants the fees that Luton can charge airlines to be set by the Civil Aviation Authority. He hopes this will stop the increase in easyJet's landing fees, which he claims will add £5 to each ticket.