Sir Stelios’ new airline ‘not a rival’ for easyJet

Sir Stelios Haji-Iaonnou’s proposed Fastjet service is unlikely to directly compete with easyJet as plans for a new airline will see it go head-to-head with British Airways and Virgin Atlantic on routes to North America instead.

It was revealed last week that Sir Stelios wrote to easyJet, in which he and his family hold a 37 per cent stake, saying he intends to form a new airline as his spat with the carrier’s management worsened.

At the time it was thought that the venture might compete with easyJet, which operates flights mainly in Europe. But recent reports have suggested the service is more likely to try to shake up the transatlantic market.

It is understood that Fastjet is only one of a number of names the billionaire is considering registering. He may also register “Stelios” as a brand.

Sir Stelios is also thought to be working in partnership with other entrepreneurs who are already attempting to build an airline.

In a statement last week, easyJet said Sir Stelios alleges the carrier has breached the terms of a “comfort letter” dated October last year – making it null and void. EasyJet said it “emphatically” rejected the claims.

The comfort letter included a “mutual respect” clause that prevented Sir Stelios from speaking negatively of the airline, while also preventing him from either setting up a rival airline or becoming a significant holder in another carrier.

A spokesman for Sir Stelios has said the airline founder believes easyJet directors breached a clause in the comfort letter which stated they would remain committed to enhancing the easyJet brand’s reputation.

The latest row between Sir Stelios and the easyJet board shocked the market because it seemed the two sides had settled their differences. Sir Stelios, who founded easyJet but stepped down last year, has been lobbying for the return of more money to shareholders and a curb on fleet expansion.