EasyJet Ends Litigation Over Brand Dispute Stelios Will Not Be Chairman


  Bookmark and Share

EasyJet Ends Litigation Over Brand Dispute Stelios Will Not Be Chairman

By Daniel Baxter

October 12, 2010 - EasyJet, the UK’s largest airline, announces it has resolved its litigation with easyGroup IP over the terms of the ‘EasyJet’ brand license. A revised brand license agreement ends the long-standing uncertainty arising from the on-going dispute and confirms EasyJet’s right to generate revenues from ancillary activities. 

EasyJet Airline is a British airline headquartered at London Luton Airport. It carries more passengers than any other United Kingdom-based airline, operating domestic and international scheduled services on 500 routes between 118 European, North African, and West Asian airports. 

The amended and re-stated license agreement continues EasyJet’s worldwide rights to the use of its brand on a basis which protects EasyJet’s current commercial activities and provides clarity and certainty over the terms of the license.


Operational flexibility is considerably improved and EasyJet will have the freedom to enter new co-branding agreements with other travel service providers as well as white label partners such as car hire, hotels and travel insurance companies. In addition, EasyJet will have the right to enter co-branding promotions with other leading brands. 

The rights will continue for a fifty year term, with a minimum commitment of ten years in return for an annual royalty payment of 0.25% of EasyJet’s revenues. The payment is fixed at £3.9 million and £4.95 million for the first two years of the agreement.

Upon obtaining shareholder approval for the revised brand license, Sir Stelios has agreed to give up the right to appoint himself as EasyJet Chairman and end easyGroup’s rights of representation on the Board of EasyJet. 

“EasyJet has grown and developed since the brand license was signed and the license agreement needed to be clarified to allow the Company to move forward. I believe the revised agreement better aligns the interests of EasyJet shareholders and the Licensor. I’d like to thank Sir Stelios for his constructive approach to our discussions over the past few weeks. Sir Stelios created EasyJet and its success is a tribute to his vision and energy” said EasyJet Chairman Sir Mike Rake.


“As the largest single shareholder in the airline as well as the owner of it's brand, I hope that the new team, led by Mike, Carolyn and Chris, will use this expanded scope of the brand license to create value for all shareholders” said Sir Stelios Haji-Ioannou easyGroup Chairman. 

“The way low cost airlines make money has changed over the 10 years since the original license was signed. This amendment allows the airline to now grow its business even further by removing some of the restrictions imposed by the original agreement. 

I am content this is a fair deal for both sides. The agreed amendments will result in increased competition from the airline for the other easyGroup licensees (such as easyHotel, easyCar and easyBus). However the agreed royalty payable provides appropriate remuneration for easyGroup thereby aligning the interests of both parties. Let's hope this is a win-win for all concerned!” 

“This is a sensible resolution of a difficult dispute that provides a fair, clear, workable outcome that is an improvement for both sides. It provides EasyJet with operational flexibility and commercial freedom to grow our business and it provides both sides with clarity” said Carolyn McCall, EasyJet Chief Executive.


Other News Stories

Home Aviation News Aviation Stories Of Interest FAA Exam Upcoming Events Links To Other Sites General Aviation Helicopters Medical Factors Facing Pilots
Maintenance and Aircraft Mechanics Hot Air Balloon Aviation Training Handbooks Read Online Aviation History Legal Issues In Aviation Sea Planes Editorials
 ©AvStop Online Magazine                                                                 Contact Us                                                  Return To News                                          Bookmark and Share


AvStop Aviation News and Resource Online Magazine

Grab this Headline Animator