EasyJet founder launches legal action against airline

The founder of Britain’s largest low-cost carrier, easyJet, has decided to launch legal action against the airline. Sir Stelios Haji-Ioannou, who still owns a 15 percent stake in the airline and also controls the EasyGroup, alleges that the airline is spending too much of its energy generating non-flight related revenue, especially through its recent launch of an easyJet credit card, as well as a hotel booking service. In addition to this, the carrier has also entered the car rental business by launching easyCar.

Haji-Ioannou argues that the current brand licensing agreement requires that 75 percent of easyJet’s revenues come from its airline business, rather than from other services. While the discount carrier’s founder claims that easyJet may be breaking this part of the agreement through the launch of various extra services, Sir Colin Chandler, the airline’s chairperson, was quick to point out that 90 percent of the airline’s revenue still comes from seat sales. The airline also noted that the current dispute does not jeopardize easyJet’s extra travel-related services, even though some analysts believe that the current court case may lead to the modification of the brand licensing agreement. The London High Court will now go ahead with an examination aimed at determining what percentage of easyJet’s revenue comes from its core activity.

www.easyjet.com