Brand licensing group easyGroup has made a conditional arrangement with investment company Rubicon to create an African airline under the fastJet.com brand.
EasyGroup’s airline experts will provide general strategic, management and branding advice on the feasibility of launching a no frills business for the continent.
Sir Stelios (pictured) revealed plans for fastJet in September when it was interpreted as a move to put pressure on easyJet. He and his family are still stakeholders in easyJet and disagree with some elements of the low cost airline’s growth strategy.
EasyGroup will take an initial 5% stake in Rubicon, subject to shareholder agreement, and will have the option to take a further 10%. It will also earn a royalty fee for 10 years in relation to Rubicon’s use of the fastJet.com brand, depending on specified conditions being met.
Rubicon will have rights to the fastJet.com name for an initial 12 mouths if the project is implemented and provided it meets certain demands the rights will continue on a perpetual basis. These conditions include taking delivery of an aircraft liveried as fastJet or completing a reverse takeover of the airline venture.
Sir Stelios says: “I am looking forward to being part of this new venture to bring low cost air travel to the people of Africa. Africa must now represent the final frontier of this aviation revolution which started in the US in the 70s and which I was proud to have led in Europe in the 90s.”