[mkcol74]

easyJet clearly trying to keep money within the company by launching next winter earlier than normal, so people hopefully amend instead of outright cancel.

This bit of the email stood out to me “Until midnight on Tuesday 24/3/20, fares for our flights from 25th October 2020 – 28th February 2021 will be available at or below £29.99 one way per person.”

I’ve not looked however that could be very decent if some of their longer/ski routes are on sale.

[canucklad]

A clever and sensible move to at least try and potentially slow the flow of cash haemorrhaging out by at least trickling some monies back into the pot.
Just wish I knew Athletic Bilbao’s fixture list for next year 🙂

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mkcol74

[Chris in Makati]

That’s all ok as long as easyJet is still in existence at the end of October.

[Johnnyg]

I find it morally wrong that they go cap in hand for government help when they pay out £170m in dividends tomorrow.

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ImissConcorde, Jacob

[Arny]

Well of course greedy easy jet are not refunding fares to and from Spain already booked, unlike jet2 for example. But yes from a cash flow perspective future business is their focus.

[Arny]

Good point!

[manxman123]

And Easyjet is flying empty planes to places like France which are in total lockdown. Better to do that than cancel the flight and have to give refunds to everyone.

[SimonS1]

After the way in which Eastjet paid out dividends of £170m last week (including £60m to Stelios) and then claimed poverty I question whether they have the right moral values.

A number of other businesses like M&S, Travis, William Hill and ITV managed to navigate their way through the legals and conserve cash.

[mkcol74]

[postquote quote=994718][/postquote]

It has been explained several times that easyJet were legally obliged to pay the dividend.

[SimonS1]

[postquote quote=994725][/postquote]

It hasn’t been “explained”, only that Easyjet said they were legally obliged to pay it. What did you expect them to say?

Also other companies in a similar position like ITV, Travis Perkins and Persimmon have all managed to cancel declared 2019 dividends.

It has also been reported that this is what lead to a hardening of attitudes towards the airline sector.
https://www.theguardian.com/uk-news/2020/mar/24/uk-airlines-and-airports-told-not-to-expect-industry-wide-covid-19-bailout

Still, look on the positive side….if the first priority is to call first on existing investors, they know that Stelios has £60m available.

[LuganoPirate]

[postquote quote=993993][/postquote]

Just to take the opposite side of the coin. The dividend was declared before this became a pandemic. As such it is owed to the shareholders and is a liability on their balance sheet. Legally they cannot “not” pay the divi. As far as I know, without researching it, they have made profits on which tax has / will be paid, and of course the dividends will be taxed.

To let the airlines all go under, would be a greater disaster, and cost the government far more, in terms of trade, taxes, fee’s and so on that they contribute to the economy, than by bailing them out. It does depend though on how the bailout is done. Loans or outright payments without recourse, and the conditions and what it’s for. If all 14,000 EZY employees had to go on the dole (or whatever it’s called nowadays) the cost to government would also be very high.

A bit swings and roundabouts methinks!

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mkcol74, FaroFlyer, capetonianm

[capetonianm]

True, but the recipients of the dividends are under no obligation not to return them where they could be used towards maintaining payments to staff.

[ontherunhome]

As this seems to be an Easyjet Thread, thought I’d add something.

I am a shareholder in Easyjet, a small holding, as I like the company and the business model, i even use them sometimes when possible.

As for the dividend, unfortunate timing, but are we asking all those with savings in banks to hand back the interest, so the banks can lend it to people?

I have just had two flights cancelled, from at to Vienna from Bristol. Under manage my booking, only option is change dates, or call customer support fro a refund, it used to be an online service. Now you call them, hear amessage then get cut off. As bad as the BA situation not offering refunds, but trying to force customers to take a voucher.

let us see what happens, but I will certainly in future look to other optuions to book flights.

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Slayeronwings

[SimonS1]

[quote quote=994753]Just to take the opposite side of the coin. The dividend was declared before this became a pandemic. As such it is owed to the shareholders and is a liability on their balance sheet. Legally they cannot “not” pay the divi. As far as I know, without researching it, they have made profits on which tax has / will be paid, and of course the dividends will be taxed.[/quote]

If you are sure that legally they cannot avoid payment, how would you say that the likes of ITV, Travis and Persimmon managed to do exactly that?

[SimonS1]

[quote quote=994762]As for the dividend, unfortunate timing, but are we asking all those with savings in banks to hand back the interest, so the banks can lend it to people?[/quote]

You have completely lost me there.

Dividends are company money paid to owners. Interest is not the bank’s money in the first place, so why would people return it?

Secondly as interest rates are effectively zero it is unlikely people will be getting much interest.

Thirdly the banks are not short of cash to lend, as QE and other measures are feeding plenty of liquidity in.

[Author]

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