The collapse of global air travel
The scale of disruption is stark.
Airports Council International estimated a reduction of 2 billion passengers in the second quarter of 2020 alone, with 4.6 billion fewer passengers across the year. This contrasts sharply with 2019’s record high of 9.1 billion passengers. In mid‑April, IATA forecast a loss of $314 billion in airline passenger revenues, a 55% fall from 2019.
These figures illustrate the severity and longevity of the crisis. No airline has been immune. British Airways, Ryanair and easyJet have already taken legal action against UK quarantine legislation, arguing that the restrictions further damage an already fragile industry.
EasyJet’s financial strain
EasyJet has been hit particularly hard. Its entire fleet was grounded, forcing the airline to secure a £600 million emergency loan from the UK Treasury’s Coronavirus fund and borrow an additional £400 million from commercial creditors. These financial pressures formed the backdrop to a significant shareholder dispute in May 2020.
The shareholder vote
On 22 May, easyJet shareholders voted on whether four directors, including CEO Johan Lundgren, should be removed. The vote was initiated by Sir Stelios Haji‑Ioannou, the airline’s founder and holder of 34% of its shares.
Under s. 303(1) of the Companies Act 2006, shareholders holding at least 5% of voting shares may require directors to call a meeting. To remove the directors, Sir Stelios needed a simple majority under s. 282(1), meaning he required support from shareholders holding more than 16% of shares in addition to his own.
Why the vote happened
Sir Stelios opposed the board’s intention to proceed with a £4.5 billion deal to purchase 107 Airbus aircraft. Although the order was agreed in 2013, he argued that completing it during a global aviation crisis was financially reckless. He warned that the airline could face insolvency by December 2020 and offered £5 million of his own funds to anyone who could provide information capable of stopping the deal.
He accused the directors of ordering unnecessary aircraft and described them as “scoundrels” and “masters of bribery”, highlighting the increasingly hostile relationship between him and the board. His frustration was amplified by the optics of committing to a multibillion‑pound aircraft order while relying on £1 billion in emergency loans.
The board’s position
The directors argued that cancelling the order could expose easyJet to expensive litigation and damages equivalent to the cost of the aircraft. They pointed to similar disputes, such as the litigation between Sycamore Partners and L Brands, as evidence of the risks of withdrawing from major commercial agreements.
The result
Over 99% of votes cast supported the board. All four resolutions were defeated, and Sir Stelios failed in his attempt to remove the directors.
The cyber‑attack and data breach
EasyJet’s difficulties did not end with the shareholder dispute. The airline announced that it had suffered a sophisticated cyber‑attack affecting approximately 9 million customers. Of these, 2,208 customers had their credit or debit card details accessed.
Group litigation firm PGMBM has brought an £18 billion claim against easyJet, seeking £2,000 for each affected customer. The precedent is significant. British Airways was fined £183 million for its 2018 data breach, with total payouts estimated at around £3 billion for mishandling the data of half a million customers.
These cases highlight the growing importance of data protection. Law firms with strong regulatory and litigation teams are increasingly central to advising clients on breach disclosure, reputational management and compliance with data protection obligations.
The rise of data protection in aviation
The easyJet and British Airways breaches demonstrate that data protection is now a critical issue for airlines. As technological reliance increases, so does exposure to cyber‑attacks. Data protection spans regulatory compliance, litigation strategy and crisis management. Firms with strong track records in these areas will continue to thrive as the aviation industry becomes more digitally dependent.
Conclusion
The pandemic has reshaped the airline industry, exposing financial vulnerabilities, triggering shareholder disputes and accelerating the importance of data protection. EasyJet’s experience illustrates how operational, legal and technological challenges can converge during a crisis.
As airlines navigate recovery, legal teams will play a central role in managing risk, safeguarding data and supporting long‑term stability.
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