French turbulence ahead for easyJet

LOW-cost airline easyJet is facing litigation from French travel agent Go Voyages which could hamper its use of the easy and Go brands across Europe. Former Air France subsidiary Go Voyages, now 60% owned by French hotels colossus Accor, has registered Go Easy as a French trademark and has been battling since 1998 to stop easyJet takeover target airline Go Fly from using the Go name and logo in France.

Go Voyages managing director Nicolas Brumelot said the case is scheduled to come before a French high court on 24 June. 'People in France often confuse the two companies and our charter planes with theirs, which are also new-generation Boeing 737s,' he said.

Problems with the Go and easy names are confirmed in the prospectus for a rights issue to fund easyJet's planned £374m takeover of UK rival and former British Airways subsidiary Go Fly. The French firm is 'seeking, inter alia, an injunction against Go to prevent it from using Go as part of its branding in France and the cancellation of Go's European Community trademarks,' the prospectus says.

EasyJet plans to replace the Go brand with its own logo. However, the registration by Go Voyages of the words Go Easy, used on its website in relation to travel insurance, may threaten easyJet's ambition to catch up with European no-frills leader Ryanair by purchasing Go Fly and Deutsche BA, a German domestic carrier also created by British Airways. The registration could affect easyJet's ability to market itself under the easy brand in France, says the prospectus.

The trademark problems are likely also to focus attention on the fact that the easy brand is not owned by easyJet but by Group IP Licensing, which is controlled by easyJet chairman and founder Stelios Haji-Ioannou, who is set to retire next year. He has licensed the brand for use in other businesses, such as car hire and personal finance.

Go Voyages was bought by Brumelot and other Air France managers four years ago and was heading for the stock market until chief shareholder Accor lifted its stake from 38.5% earlier this year in a deal valuing Go Voyages at e60m(£39m). Brumelot said: 'I've asked my lawyers to contact Go Fly's lawyers in the hope of reaching an accord before the hearing.'