Sir Stelios Haji-Ioannou, the founder of Easyjet, will this week give evidence against the low-budget airline, which he still partly owns, that could force it to re-brand.
Although business people taking action against their own brain-child is rare, the entrepreneur has been unhappy with the company's management for many months.
His dispute, and the one to be ruled on this week at the Royal Courts of Justice, centres on a branding agreement drawn up when he floated the company in 2000.
Under the agreement, Easyjet is restricted to not making more than 25 per cent of its revenue outside of its "core" activity - taken at the time to include selling seats.
What other sales, such as those from checking in bags, car hire, hotel stays and on-board food, should be part of the airline's 'core' operations will be down to the court.
Although the impending case has silenced the rowing parties, sources on both sides told a Sunday newspaper that the ruling could have a visible impact on the airline.
Should Easyjet keep the name and brand after the judgement, more negotiations between Sir Stelios and management would need to take place to reach a commercial settlement.
But if that settlement or the terms of the court's ruling are seen as overbearing to the business, its management will likely scrap the name, the Sunday Times reported.
In May, Sir Stelios resigned from the airline's board, saying he was unhappy with the chief executive's pursuit of company expansion at the expense of shareholders.
At the time of writing, he retains 38% of the company's shares, allowing him to block any takeover, or be at the helm of one should it receive an unwelcome approach.
Editorial image courtesy of WexDub.
Jun 14, 2010
Email this article
Printer friendly page
Previous Page
