EasyJet founder launches commercial litigation case

Published on 16 Jun 2010 under category: legal

The founder of the budget airline easyJet is taking the company to court, arguing that it has breached a branding agreement.

Stelios Haji-Ioannou is the carrier's largest shareholder and has been involved in a commercial dispute with the now public company for two years.

Under the terms of a brand licence contract, easyJet is required to generate no more than 25 per cent of its revenue from ancillary services, or activities other than flying passengers.

Mr Haji-Ioannou claims the airline is breaching this agreement by altering the definition of ancillary services such as speedy boarding and food.

Sir Stelios, who owns a 38 per cent stake in easyJet, is said to be angered by the carrier's expansion plans, suggesting that they come at the expense of creating shareholder value.

EasyJet was founded in 1995 and became a publicly listed company in 2000. It currently operated over 500 routes and has 182 aircraft in 28 countries.

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