EasyJet founder to launch rival airline

EasyJet founder Stelios Haji-Ioannou is poised to go into battle with the airline he set up 16 years ago by launching a potential rival called Fastjet.

In a shock move, Haji-Ioannou has written to easyJet to announce plans to form the new carrier and has already established www.fastjet.com, which currently reads "Fastjet.com by Stelios. Coming soon!".

The move is the latest instalment in a series of conflicts between the billionaire entrepreneur and the airline in which he and his family own a 38% stake.

It looked as if the two sides had settled their differences last week after easyJet agreed to pay £190m (€218.6m) in dividends to shareholders, including Haji-Ioannou.