Sir Stelios takes on easyJet

News at Gatwick 17/06/2010

BA strike called off : June 2010 : Ryanair to introduce standing seats

High Court judgement expected in July

Sir Stelios, who last month resigned as a non-executive director of easyJet, has been appearing in the High Court in London to answer questions about his campaign to stop easyJet over expanding its fleet of aircraft. Sir Stelios main concern is that the expansion is not good for business and that the brand was risking long term damage in pursuit of short term revenues.

Sir Stelios still owns indirectly and directly, 38 percent of easyJet, but he has become frustrated with what he sees as a “squeezing” of whatever revenue it can from its customers with “useless services”

The argument revolves around what the airline considers as core revenues and what it does not. One of the biggest arguments is based on the £200 million easyJet makes from charging passengers to check their bags into the hold. The question of whether to charge for other services such as a lap extension on a seat belt to allow a child to travel on an adults lap has also been bought in to question.

Sir Stelios is arguing with easyJet over the branding agreement that was put in place at the time of its 2000 London listing which declared that it would not make more than a quarter of its revenues from ancillary services. The judgement is expected in July.

BA strike called off : June 2010 : Ryanair to introduce standing seats

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