EasyJet settles brand licence wrangle with Sir Stelios

EasyJet has been cleared to use the “easyJet” brand name after settling the legal row with the founder of the low cost airline, Sir Stelios Haji-Ioannou.

The airline has agreed proposals with Sir Stelios and easyGroup IP Licensing (eGIP) to be put to independent shareholders. The 50 year agreement will give easyJet exclusive worldwide rights to the use of the brand.

The proposals include an end to the High Court litigation and dispute between easyJet and eGIP and an agreement for the airline to pay an annual royalty of 0.25% of its total revenues to eGIP. This will be fixed at £3.9m and £4.95m for the first and second year.

EasyJet will have “greater operational and commercial flexibility” in regard to the brand licence and will not need eGIP’s consent for initiatives such as co-branding and promotions “with reputable brands”. These could include white label partners, such as car hire, hotels and travel insurance companies.

EGIP will also give up its right to appoint directors to the board of easyJet and Sir Stelios cede the right to appoint himself chairman.

Sir Stelios and easyJet have been in heated argument this year over a number of matters, including the extension of easyJet’s activities to find extra revenue beyond flying passengers and the ordering of a number of new aircraft.

EasyJet has just reported robust financial results for the third quarter with total revenue up by 5.3% to £759.2 million

Former Guardian Media Group group chief executive Carolyn McCall took up the role of chief executive at the airline in July this year.

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