Stelios Haji-Ioannou has chosen a difficult time to bring his Easyjet company to the market. The very wide suggested price range of 250p to 350p sterling (€4.27 to €5.99) shows how difficult it has been to price the issue.

Market volatility, high oil prices, a strong dollar and a dispute over charges at Luton are not helpful. But, with its growth plans based on acquiring more aircraft and the need to get the required funding in place, Easyjet cannot wait. It has a strong brand, good management and the low-cost service market is in good shape, as evidenced by Ryanair's recent upbeat trading statement.

Easyjet is selling 25 per cent of the enlarged equity, or 63 million shares. At the mid-point of the suggested price range, the 25 per cent stake would be valued at £189 million, putting a value on Easyjet of £756 million.

Ryanair and Easyjet have changed the European short-haul market. Easyjet is different from Ryanair in that it aims at business as well as leisure customers, so it has to use more convenient and therefore more expensive airports.

Analysts say a share price discount to Ryanair of about 20 to 30 per cent would be warranted because of its shorter track record, its more taxing growth targets, the trouble at Luton and because its fuel costs are not hedged. A bigger discount could cause a switch to Easyjet shares.