EASYJET DESPUTE ENDS

admin
By admin October 12, 2010 14:35

EASYJET DESPUTE ENDS

Easyjet confirmed yesterday that it has resolved a two-year brand licence dispute with easyGroup IP, which will see the airline keep its “easyJet” name and founder Stelios Haji-Ioannou lose his right to appoint himself to the board. The deal allows easyJet to enter new co-branding agreements and promotions with other travel service providers as well as car hire, hotels and travel insurance companies. It will also now be allowed to lease non-easyJet planes from other airlines or lease out its own aircraft without easyGroup’s permission. EasyJet chairman Mike Rake say: “I believe the revised agreement better aligns the interests of easyJet shareholders and the Licensor.”

EasyJet’s rights will continue for a 50-year term, with a minimum 10 year commitment. Haji-Ioannou who, together with his family, owns a 36.3% stake in the airline will receive a fixed payment of £3.9 million in 2011, that sum will increase to £4.95 million in 2012. Thereafter, there will be an annual royalty payment of 0.25% of easyJet’s revenues. In return, the founder has agreed to surrender his rights to appoint himself as easyJet Chairman or appoint a representative to the board. Easyjet shares were up 17 pence, or 3.7% at 468 pence on the news yesterday.

admin
By admin October 12, 2010 14:35
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Only <a href="http://www.aviationnews-online.com/wp-login.php?redirect_to=http%3A%2F%2Fwww.aviationnews-online.com%2Fairline%2Feasyjet-despute-ends%2F"> registered </a> users can comment.