Easyjet's founder claims the airline is no longer low cost

15 June 2010

They are one of the most well known airlines in the UK, well noted for being low cost and very hard to miss with their fleet of orange and white liveried aircraft. However, there's an internal dispute at Easyjet which has now been taken to London's High Court by founder and majority shareholder Sir Stelios Haji - Ioannou.

Sir Stelios has claimed that the airline is 'no longer a low cost airline' and that the airline is in breach of its rights under a licencing agreement which states that the amount of revenue Easyjet can make from additional charges, like extra baggage fees and in flight snacks, can be no more than 25%.

Easyjet's latest set of accounts show that the company only made 20% in additional fees but Sir Stelios and his Easygroup company claim that Easyjet have not followed the original guidelines on what is classed as an additional fee.

Sir Stelios is also the founder of various other Easygroup businesses such Easyhotels, Easycruise and car hire outfit Easycar. He is also making a claim that Easyjets ancillary revenues from hotel bookings and rental cars could be confused with his own ventures.

The court case is expected to last up to two weeks with both parties prepared to fight it out and contest their corner.

Back to the news page...

The latest Edinburgh rental car news

• Enterprise to debut electric cars in January 2011 - 05 August 2010
• No fuel in Central London this morning - 27 July 2010
• Free residents parking to be taken over by Edinburgh Council - 26 July 2010
• Renting a car in Iceland can cost more than buying one - 20 July 2010

Cheap Edinburgh car hire quote...

What's included with my car hire?

Why rent a car from us?