Ancillary services

EASYJET and its founder and largest shareholder Sir Stelios Haji-Ioannou were in court last week debating whether ancillary services are part of the airline operation, or a bonus.  Under the terms of a brand licence agreement made when it floated in 2000 the non-frills carrier can only make 25% of its income this way.  The case hinges on whether services such as baggage and speedy boarding, as well as food sold on board and charges for infants, should be classed as ancillary or core services.  More representations are due to be heard this week with judgement expected in late summer.  Sir Stelios will again be in court shortly, this time taking on Ryanair boss Michael O'Leary, after the outspoken Irishman portrayed the “easy” entrepreneur as a Pinocchio figure in an advert querying the Luton-based airline’s punctuality figures. www.easyjet.com

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