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Stelios settles brand dispute with easyJet

easyJet will be allowed to keep the brand name for 50 years, with Sir Stelios Hajji-Ionna receiving

Low-cost carrier easyJet and its founder Sir Stelios Hajji-Ionnau have settled a two-year dispute over the use of the "easy" brand name.

According to the deal announced on Monday, the airline company will be allowed to keep the brand name for another 50 years by paying Sir Stelios an annual royalty of 0.25 per cent of its revenues.

The payment is capped at £3.9m and £4.95m for the first two years of the agreement.

However, the agreement will end Sir Stelios' right to appoint himself as chairman of easyJet's board, and his right to appoint at least two directors.

The deal will now allow easyJet greater flexibility of operation to make use of opportunities in businesses such as car rental, hotel and insurance, including co-branding agreements with other travel service providers.

Sir Stelios, along with his family, is the biggest shareholder in easyJet with a 37 per cent stake. He also owns the rights to the brandname and has been licensing it to the company for a fee of £1 a year.

Both parties have expressed their satisfaction with the new deal.