easyJet pays price to keep its name
EasyJet has agreed to pay founder Sir Stelios Haji-Ioannou an annual royalty of 0.25% of its revenues for the next 50 years in order to be allowed to keep the ‘easy’ name.
The payments, made to Haji-Iannou’s easyGroup, will be capped at £3.9m and £4.95m in the first and second years respectively.
In return, Haji-Iannou has agreed to give up the right to appoint himself as easyJet chairman and easyGroup will give up the right to appoint directors to the airline’s board.
Haji-Iannou remains easyJet’s largest shareholder, with a stake of 38%.
The Cypriot entrepreneur had been critical of the airline’s growth strategy and threatened to strip the airline of its name.
He claimed the airline was in breach of its brand licence which limits easyJet’s earnings from non-core activities to no more than 25% of revenues. Haji-Iannou claimed income from ancillary sales, such as baggage check-in, was not part of the airline’s core business.
A new brand licence agreed today gives easyJet the right to earn revenue from ancillary services and to enter into co-branding agreements with other travel service providers.
EasyJet chief executive Carolyn McCall said:"This is a sensible resolution of a difficult dispute that provides a clear, fair, workable outcome that is an improvement for both sides."
News of the end of the long-running dispute with Haji-Iannou boosted easyJet’s shares by 4.45%.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Skyscanner reveals major travel trends 2026 at ITB Asia
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists