Chronicle Editor
Business Reporter
LOW-COST airline Fastjet says it has acquired all the intellectual property rights associated with its brand name from the easyGroup at a cost of $2.5 million with effect from June 20, 2017.
“Fastjet has paid cash consideration of GBP 2.5 million for the brand, but it represents significant savings in royalties that will be amortized over the next five years,” it said in a statement yesterday.
Prior to that, the airline licensed the mark from the easyGroup and Sir Stelios Haji-Ioannou who established the brand in 2012, and founded easyJet in 1995.
“Fastjet is a great brand in all its African markets, making it a highly valuable asset for the company,” says founder and shareholder Sir Stelios Haji-Ioannou.
“I have accepted the view of the current board that the company should own its own brand rather than licence it from me. I feel we have agreed a fair price for its transfer — $2.5m — which is less than what the company would have had to pay over the next five years. I still hold shares worth about £1.3m in the company and as such I will be a supportive shareholder, hoping to realise significant upside potential as fastjet grows and prospers. From the decisive actions thus far taken by the new management and board, and early indicative outcomes, I am encouraged that fastjet’s direction of travel is now on the right course”.
Last week Fastjet was recognised as best African low-cost airline by the Skytrax World Airline Awards at the Paris Air Show. Said Nico Bezuidenhout, chief executive of fastjet: “Brand development is an integral part of building a successful consumer facing business and represents a substantial investment for any airline.
“It logically follows that your brand, an asset to be leveraged for the benefit of shareholders, should be under your full control and ownership. We are happy to have reached agreement with Sir Stelios and appreciate the ongoing confidence he has expressed in the fastjet business and leadership team.”
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