Budget airliner easyJet and its founder and largest shareholder, Stelios Haji-Ioannou, have ended their lengthy dispute over use of the brand name.
Stelios, as he is widely known, will licence the easyJet brand for an annual fee giving the company more freedom to use the name and enter co-branding agreements.
Stelios has in the past threatened to pull easyJet’s right to use the brand unless flight punctuality improved.
The new agreement will allow easyJet to use the brand for 50 years, with a minimum commitment of 10 years in return for an annual royalty payment of 0.25 percent of easyJet’s revenues, to be paid to Stelios, who owns 37 percent of the company.
The payment will be capped at 3.9 million pounds and 4.95 million pounds for the first two years of the agreement, easyJet said.