EasyJet deal to settle Stelios row

Monday, 11th October 2010

Budget carrier easyJet announced that it has agreed a deal that will end a long-running disagreement with easy founder Sir Stelios Hafi-Ioannou. The settlement will secure use the airline’s use of the brand, which was created by Stelios.

The agreement with Sir Stelios sees the airline paying out millions of pounds every year to end a dispute that was becoming the increasingly acrimonious. Sir Stelios had been highly critical of the strategy of airline management. Had easyJet not managed to reach an agreement with Sir Stelios, the budget airline could have had to end its use of the ‘easy’ brand.

EasyJet has now agreed to pay Sir Stelios at the rate of 0.25 per cent of annual income. This payment will be fixed at £3.9 million for the first year and £4.95 million for the second year. In addition, easyJet also pays £300,000 to Sir Stelios each year.

Sir Stelios has for his part agreed to revise the existing terms of the brand’s licensing agreement. EasyJet will be allowed greater freedom. The clauses that previously allowed Sir Stelios to take the role of chairman will be removed. Together with his family, Sir Stelios controls approximately 37 per cent of eayJet. Sir Stelios said the agreement was a “win-win”. Shares in the airline rose five per cent on the announcement.

← Manchester Airport Plc produces £100 million dividend
→ BAA loses appeal against forced airport sale
↑ October 2010 news index

Compare Airport Parking & Hotels