Sir Stelios Haji-Ioannou – founder of the easyGroup – has confirmed he will launch easyHoliday in October 2011.
The move will put the entrepreneur in direct competition with low-cost airline easyJet, of which he remains a shareholder.
Sir Stelios took the decision to launch just weeks after settling a brand dispute with easyJet.
Under the terms of the deal the low-cost airline was awarded exclusive use of the easyJet name to sell ancillary products - including holidays – with 0.25% of the profits going to Stelios.
However, the agreement also stipulates the businessman cannot launch a rival business for 12 months.
The news comes ahead of easyJet’s presentation to investors tomorrow of its plans to expand its own holiday business, easyJet Holidays, which will be a joint venture with bed bank lowcosttravel group.
The airline’s chief executive Carolyn McCall is also expected to announce the airline’s first dividend payment to shareholders tomorrow following demands for regular pay-outs from Sir Stelios, the airline’s biggest stakeholder.
The budget airline is expected to deliver a pre-tax profit of around £150 million tomorrow - three-times higher than last year when it was hit by higher fuel and staffing costs.