The wrangle between Easyjet and its founder Stelios Haji-Ioannou has been resolved with an agreement that could potentially earn the low-cost pioneer £100m over a decade by doing nothing.
The two parties have been in deadlock for two years over the use of the Easy brand name which is owned by Sir Stelios. Until the agreement, the low-cost carrier was restricted in how much non-flight revenue it could earn using the brand name.
But Sir Stelios has agreed that the low-cost model has altered since the original agreement and has lifted the cap. Now Easyjet, which has a new 50–year licence as part of the deal, is expected to ramp up its strategy to push sales in non-core areas such as hotels and car hire.
The agreement also means that Sir Stelios who, with his family, owns 37% of the airline, no longer has the right to appoint himself chairman of the board.
And what’s in it for Sir Stelios? An annual royalty payment of 0.25% of the airline’s revenues capped at 3.9 million and £4.95 million for the first two years of the agreement.
It is thought Sir Stelios will use the money to fund new projects such as easyholidays.com although the carrier has stipulated a two-year brake on this.
