easyJet case continues

easyJet case continues

Sir Stelios Haji-Ioannou has accused the easyJet of “gouging” its customers with “useless services” as the court case continues. He told the High Court he believed easyJet was causing long-term damage while it pursued short-term revenue solutions. According to the Daily Telegraph, Geoffrey Hobbs, QC compared the lost-cost airline to the London Underground in Haji-Ioannou’s cross-examination and said some of his arguments were “ridiculous”. Hobbs continued to ask if the easyJet Founder if he considered providing a toilet as a “non-core activity” and asked if he thought the airline should have standing flights. Haji-Ioannou said this was an extreme example. The case centres on what constitutes as easyJet’s core revenues and what does not. Its biggest areas of dispute are the baggage-hold and extended seatbelt charges although easyJet insists it does not make more than 25% of revenue from services like this. It also said the branding agreement put in place in 2000 was still valid. Last month, Haji-Ioannou resigned as a non-executive director of easyJet to stop the airline expanding its fleet, which he believes will not produce a good return. The case will continue into next week and judgement could be set next month.

Gary Marshall
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Gary Marshall
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