Sir Stelios may start flights to America

Sir Stelios Haji-Iaonnou’s Fastjet service is unlikely to directly compete with easyJet, which operates flights mainly in Europe.

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 but it is now understood the service is more likely to try to shake up the transatlantic market.

It is also believed that Fastjet is only one of a number of names the billionaire is considering registering. He may also register Stelios as a brand, according to one newspaper report.

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.

EasyJet has vowed to fight Sir Stelios if Fastjet infringes the rights of the airline and its shareholders, although it “continues to seek constructive dialogue” with the Greek-Cypriot tycoon and easyGroup, the company he owns which controls the “easy” brand.

Sir Stelios formed easyJet 16 years ago but stepped down last year.