Chief executive stepping down at easyJet

The boss of low-cost airline easyJet is to leave the company next summer, it was announced today.

Andy Harrison, who joined easyJet from motoring group RAC in December 2005, will step down as chief executive at the end of June in order to "seek new challenges".

The airline also confirmed that Sir Michael Rake will take over as its new chairman from next month, having joined the company's board in the summer. He is also chairman of telecoms group BT.

EasyJet has been one of the few airlines to make a profit in the last year, although it has not been without its problems in the boardroom.

It recently resolved a long-running spat with the airline's founder and biggest shareholder Sir Stelios Haji-Ioannou over growth plans, announcing the board had reached agreement on a "prudent" fleet expansion programme.

Sir Stelios owns 15.5 per cent of the company and votes with his sisters to give a combined stake of 26.8 per cent. His brother owns a further 11.3 per cent.

The flamboyant easyGroup empire millionaire wanted the board to consider maintaining dividend payouts by scaling back growth plans to match market conditions.

Interim chairman Sir David Michels, who is remaining with the company as senior independent director, paid tribute to Mr Harrison today.

He said: "EasyJet has been the best performing European airline through the recession and we thank Andy for his considerable contribution during this period and his leadership of the company over the last four years."

Mr Harrison, who will be involved in the search for his successor, said: "I have loved being a part of easyJet's success but am now looking forward to moving on to a new challenge."

Luton-based easyJet posted underlying pre-tax profits of £43.7 million for the year to September 30, compared with £123.1 million in 2008. The airline carried 45.2 million passengers in the year - up 3.4% on a year earlier.

The company's shares were 2% lower today following news of Mr Harrison's planned departure. It is also without a chief financial officer following the departure of Jeff Carr earlier this summer.

Numis Securities analyst Wyn Ellis said: "Harrison's departure is a disappointment but achieving clarity on the chairman with a high-quality individual is key: we see Sir Michael Rake's appointment as a major positive.

"We believe that easyJet has excellent medium-term growth potential and, with Sir Michael on board, it should be able to attract high-calibre candidates for the chief executive and chief financial officer roles. Until there is clarity, however, the shares are unlikely to perform."