easyJet and Sir Stelios go to Court

Sir Stelios Haji-Ioannou, the founder and largest shareholder of budget carrier easyJet, has been accused by the airline of treating passengers like ‘pound notes’. This accusation came while he was on the stand during a court battle over the brand.

In a series of exchanges with the legal team representing easyJet, Sir Stelios was made to defend his interpretation of the airline’s business model. He claims that the carrier is in breach of a brand license that limits how much they earn from non-core activities to 25% of revenues.

EasyJet’s QC, Geoffrey Hobbs, spent an hour cross-examining Sir Stelios about the definition of ‘non-core’. The entrepreneur had previously argued that infants should be charged a ticket if they sit in their own seat, but if they sit on their parents’ laps, they shouldn’t. Then Hobbs asked if he just looks at people like they are pound notes and then allocates them to revenue streams in order to determine if they are core or non-core.

Sir Stelios’ argument is that the main business of easyJet is to sell tickets, while the extra charges should count as non-core, which includes baggage check-in charges. If the High Court agrees with him, then the carrier will be in breach of the branding deal since they generated £238 million from what would be non-core revenues last year.

Sir Stelios dismissed the argument from easyJet that baggage check-in charges are integral to the business. He simply said that selling a seat is core. Sir Stelios also attacked chief executive Andy Harrison, saying that he sees the airline’s share price performance and failure to pay a dividend as disappointing.