easyJet warned ‘run on time or change your name’
22.07.10
easyJet has been told it has 90 days to get more of its flights running on time, or it will have to change its name, SKY reports. The warning was given by lawyers for Sir Stelios Haji-Ioanou, the airline's founder, major shareholder and owner of the easyGroup empire who licences the easy brand to the airline. He is currently in dispute with the airline over its expansion strategy and failure to pay dividends.
In a letter to easyJet's legal team, easyGroup's representatives said recent flight punctuality statistics, particularly those from Gatwick, had generated ‘serious and unfavourable’ headlines in the national press. It referred to an article in the Sunday Times, which reported that figures it had obtained from Gatwick showed that over half of easyJet flights departed late - a worse record than Air Zimbabwe.
easyGroup said the ‘embarrassing comparisons’ had the ‘potential to cause irredeemable harm to the reputation of the airline and to the more general 'easy' brand’ if continued for a period of time’. It said it did not accept easyJet's excuse that air traffic control problems were behind the widespread delays, arguing instead that it believed poor management and staffing were to blame.
The letter is reported to state: ‘Your client is operating in a way that is materially detrimental to and inconsistent with the good name, goodwill, reputation and image of our client and its intellectual property rights. Our client provides easyJet with 90 days' notice... to remedy the breach of clauses by operating at a level of punctuality that preserves and promotes the goodwill associated with easyGroup IP Licensing's intellectual property rights.’
The deadline comes at the worst time for the airline, as the busy summer holiday period puts further pressure on tight flight schedules and with more strikes by European air traffic controllers planned. If easyJet does not meet easyGroup's demands by October 17, it will be forced to undertake a costly rebranding of the business.
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