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Easyjet may have to change name
Budget airline in legal battle with founder Stelios over the terms of its licensing agreement to use the Easyjet brand
EASYJET could be forced to change its name in a legal dispute with its founder and rebel shareholder, Stelios Haji-Ioannou.
Stelios, who charges a token fee of £1 a year to use the Easyjet brand, claims the budget airline has breached the terms of its licensing agreement by diversifying too much.
The two sides are due in court in London this week over Easyjet's sale of "ancillary products" - items other than the provision of air travel.
The airline said in a statement that it had considered rebranding as a worst-case scenario but believed it had done nothing that would merit the licensing deal being terminated.
If the firm stops using the name, Stelios plans to launch an online travel agency using the Easyjet brand, competing against Expedia.
An Easyjet spokesman told Travel Weekly: “The board unanimously agreed last summer the company’s strategy, including the size of its fleet.
“No future decisions will be taken on this before the new management starts [next month].”
Stelios resigned from the Easyjet board last month in a row over the budget airline's future strategy, but still owns a 38% stake in the firm.
He wants the company to concentrate on maximising profits instead of investing in new aircraft.