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Baggage - core or non-core
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Jasper Kelly Sunday 20 June 2010 |
There is a certain fundamental logic in the approach taken by Sir Stellios in his dispute with easyjet, the airline that he founded. He has aggressively protected his ‘easy’ trade mark against real and imagined infringement. This is his right and, to some extent his obligation if he wishes to retain the mark.
When easyjet was floated ten years ago, he granted a licence for the airline to use the trade mark as an air carrier. He wanted to retain the freedom to develop and perhaps to licence others to use the mark for activities such as hotels and car hire etc. The agreement allowed the airline unlimited and exclusive use of the mark for its core activities and limited use for non-core activities. The terms specified that non-core should not exceed 25% of revenues.
As they say, the Devil is in the detail. Who would have thought that easyjet's baggage check-in fees would pull in £238m last year? More to the point, are these fees core or non-core to easyjet’s business. The airline say core, they are just like seats – Sir Stellios say no and this is where it gets complicated.
Sir Stelios and his easyGroup holding company argue that the airline’s main business is selling seats and that everything else is non-core. If that is accepted, the airline will be in breach of the agreement and will either have to pay up for a new licence or cease using the easy brand.
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Peter, Bristol 21 June 2010, 11:32AM | |
I agree with Sir Stelios on this one, he claims that the only core activity for a passenger is actually buying a seat and that new baggage charges are actually a secondary business. | |
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Wayne Sampson, London 22 June 2010, 11:39AM | |
This so-called economy airline is certainly trying to squeeze whatever revenue it can from its customers in an attempt to recover huge losses. All these additional charges like baggage check-in fees might be a benefit in the short term but might hurt the easy brand in the long term. | |
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Peter Jenkins, Suffolk 24 June 2010, 06:58AM | |
I have to assume that it is we, the public that are at fault. We must appear stupid for the airlines to spend so much money putting together these 'special offers' that we all dash to get. | |
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Harry Lambert, Tunbridge Wells 24 June 2010, 12:06PM | |
It does show what you can do to your bottom line once you have a captive audience of customers. | |
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Carol, Kent 24 June 2010, 03:30PM | |
I cannot see the alternatives for travellers on a budget. easyjet the 'economy airline' is now not so economy, but still the cheapest way to fly. | |
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John Daniels 25 June 2010, 04:31PM | |
I certainly view baggage as non-core, this seems quite obvious to me. Whoever at easyjet that decided to start charging extra for baggage is in the wrong here. Lets hope Sir Stelios and his easyGroup company manage to retain the easy brand. | |
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Ada, Sussex 28 June 2010, 11:38AM | |
Easyjet may as well change there name to Ryanjet,they will be charging for using the toilet before you know it. | |
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Martin Haart, London 1 July 2010, 01:46PM | |
Easyjet is starting to move away from Sir Stelios's 'easy' core values, with these non-core charges. It is nice to see that he is fighting to uphold his brand. | |
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