Sir Stelios tells easyJet it has new competition

easyJet says it has received notice from Sir Stelios Haji-Ioannou that he intends to set up an airline branded Fastjet, the move coming after the airline’s founder’s long-running campaign against the growth strategy set by the easyJet board.

easyJet, however, says it has a number of rights under its agreements with Sir Stelios and easyGroup IP Licensing Ltd (a subsidiary of easyGroup Holdings) as described in a communication to shareholders dated 16 November 2010.

“To the extent that any activity of Fastjet, Sir Stelios or any company controlled by him infringes or would infringe those rights, easyJet will take necessary action to protect the rights of easyJet and the interests of its shareholders,” the airline states.

Sir Stelios also alleges that easyJet breached the terms of the binding comfort letter between him and easyJet of 10 October 2010 and that that letter is no longer in force, claims which easyJet says it rejects.

easyJet continues to seek constructive dialogue with easyGroup and Sir Stelios, who has yet to reveal what type of operation Fastjet intends to provide.

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