EasyJet 2009 Annual Report Download - page 7

05 easyJet plc
qOverview
Business review
Governance
Accounts
Other information
Board
At easyJet we believe that good corporate governance is vital. At the heart
of this is a strong Board team who both support and challenge the executive
management so that together, we can unlock easyJet’s huge potential, whilst
appropriately managing the risks associated with operating in such a volatile
industry. easyJet is an exciting business that readily attracts talent and hence
I am pleased to report on how we have been able to further strengthen the
Board in the past year.
Sir Michael Rake was appointed Deputy Chairman and Senior Independent
Director in June. Mike is an experienced international business leader and
is currently Chairman of BT Group plc prior to which he was Chairman
of KPMG International.
Keith Hamill joined the Board in February. Keith’s background as Chairman
of Travelodge and Chairman of Go Fly! Ltd, prior to its acquisition by easyJet
in 2002, is highly relevant and I have welcomed his robust and analytical
approach to the assessment of risk in our Board discussions.
Bob Rothenberg MBE, senior partner in the accountancy rm of Blick
Rothenberg, was appointed to the easyJet Board as a Non Executive Director
with effect from 1 August 2009. His appointment was made under the terms
of the Company’s Articles giving Sir Stelios Haji-Ioannou, the Company’s
founder, nominee director appointment rights on behalf of himself and
easyGroup Holdings Limited, his private investment vehicle and a shareholder
in easyJet plc. Bob’s appointment was formally endorsed by the members of
the Company’s Nominations Committee and he brings valuable nancial
advisory and general business experience.
Sir Colin Chandler stepped down earlier in the year as Chairman after seven
years service to the Company. We thank him for his signicant contribution
throughout his tenure, as he chaired the organisation during the period which
saw easyJet achieve its current leading position in the European market.
Jeff Carr, our Group Finance Director since 2005, also left to take on a larger
challenge and we thank him too for his contribution. Whilst we complete
the search process for Jeff’s successor, we are very pleased that Mark Adams
has joined us on an interim basis as Chief Financial Ofcer. Mark has held a
number of senior nancial positions across a range of sectors and we welcome
his contribution during this interim period.
People
It has been a challenging year for easyJet’s people. I have spent a lot of time in
the past few months with the easyJet senior management population and can
testify to their exceptional level of passion for and belief in easyJet. In a tough
industry this level of engagement is a real differentiator to the performance of
the business. The commitment and enthusiasm of our crew continues to be a
key driver of our successful customer proposition and the whole Board is
grateful for the continued professionalism and commitment of all our people.
Industry regulation
The regulatory framework we operate in is crucial, as alongside ensuring that
we can operate in a safe environment, it has a signicant effect on both our cost
base and the opportunities available for future growth. We are working across
Europe to persuade governments and the European Commission to deliver
regulation that provides stability, is sensible and allows us to compete fairly.
easyJet was born out of the liberalisation brought about by EU open skies
and has been at the forefront of promoting fair competition for the benet of
consumers. We continue in that spirit with our campaign to ensure that local
airport monopolies are not able to capture monopoly rents. We also need
to ensure that easyJet continues to operate on a level cost playing eld with
legacy European carriers absent protectionist measures imposed by national
governments. We have also committed to a greater focus on the remaining
structural inefciencies, such as the management of airspace and its associated
charging mechanisms.
We know it is important that our industry addresses its wider responsibilities,
in particular to ensure we play our part in tackling climate change. We have
now taken the rst steps towards aviation’s entry into the European Emissions
Trading System, where we will operate within a system that caps overall CO22
emissions, ensuring they are put on a downwards path towards agreed
targets. However, environmental measures must deliver real gains in
environmental efciency, and cannot be used as a way to simply tax
passengers and so we are continuing to work for the reform of UK Air
Passenger Duty (APD) to operate as a genuine incentive to drive
environmental change rather than the current blunt instrument to swell
Government coffers.
Conclusion
As easyJet navigates what is still an uncertain and difcult landscape, I am
condent that easyJet’s strengths will continue to prevail and that it will
emerge as a clear winner in European short-haul aviation. I would also like in
particular to thank Andy Harrison and his executive team for so successfully
managing the Company during such a challenging year.
Note 1: Measured in seats own.
Note 2: Carbon dioxide.
Annual report and accounts 2009
Sir David Michels
Non Executive Interim Chairman