EasyJet argues case against cancelling Airbus deal

EasyJet is arguing that it cannot terminate its contentious Airbus order by falling back on the argument that the coronavirus outbreak is a situation beyond its control. The airline has been under fire from its founder, and key shareholder, Stelios Haji-Ioannou over the cost of retaining the order and has been coercing the management team – with threats to remove board members – to cancel the Airbus agreement by claiming ‘force majeure’. EasyJet insists it has “no ability” to terminate the contract this way. “This is standard in aircraft purchase contracts,” it says. But it adds that there would be ramifications if it pursued such a cancellation. EasyJet argues that it would become liable for “significant” compensation linked to discounts on aircraft already delivered under the same contract as those which are outstanding. <br/>