EasyJet operations chief Bellew quits over union pay clash

EasyJet Plc Chief Operating Officer Peter Bellew is leaving, just as the UK discount carrier grapples with flight cancellations and strikes disrupting its service.

Bellew, 57, who joined from low-cost rival Ryanair Holdings Plc in 2019, will be succeeded as interim COO by David Morgan, who has filled the role on a temporary basis previously, EasyJet said in a statement Monday.

The departure follows a difference of opinion over how best to handle clashes with unions over pay, according to a person familiar with the situation. The Irishman guided Ryanair through labor talks when a pilot shortage sparked a unionization drive and the company’s first strikes, withstanding a year of disruption to deliver a series of agreements that preserved the carrier’s cost advantage over rivals.

EasyJet declined to comment on the circumstances surrounding Bellew’s departure.

The European aviation industry has experienced major travel disruptions because of staffing issues and strikes, just as the main summer travel season gets underway. EasyJet said it remains focused on improving daily operations after contending with a three-day walkout in Spain, with two more set to follow later this month. It has also reined in summer capacity at London Gatwick and Amsterdam Schiphol, its two biggest bases, amid a labor shortage.

While Bellow resigned as of July 1, he remains committed to a smooth transition, according to the Luton, England-based airline. The stock fell as much as 5.6% in London, and was trading down 4.2% as of 3:132a.m. in the British capital, extending its decline this year to 35%.

While the carrier has ramped up capacity more cautiously than Ryanair and Europe’s third main discounter, Wizz Air Holdings Plc, the aircraft fleet at Gatwick has been expanded by more than a quarter compared with the pre-Covid peak in 2019, putting particular pressure on recruitment there.

Bellew is known as one of the more colorful figures in aviation. After previously running Malaysian Airlines, his move to Ryanair saw him occupy what unions suggested was a role of enforcer to CEO Michael O’Leary. That relationship was upended by the switch to EasyJet, which led to a legal battle over his defection to such a close rival, in which Bellew ultimately prevailed.

The move saw him work under Johan Lundgren, who has led EasyJet since 2017 after joining from tour operator TUI AG, seeking to bring low-cost rigor to a carrier whose focus on more mainstream airports brings generally higher expenses than discount peers.