The founder of budget airline easyJet, Sir Stelios Haji-Ioannou, is to let up a new airline called 'Fastjet', reports suggest.

Sir Stelios, who is still the largest shareholder of easyJet with 38 per cent of its shares, will set up the company to compete with the airline he founded.

A website set up at the url fastjet.com simply reads: "By Stelios. Coming soon!"

In a statement on its own website, easyJet said that it had a number of rights under its agreement with easyGroup IP Licensing Ltd, which is a subsidiary of easyGroup Holdings Limited.

"EasyJet plc announces that it has received notice from Sir Stelios Haji-Ioannou that he intends to set up an airline branded Fastjet and that a website has already been established," easyJet said in a statement.

"EasyJet has a number of rights under its agreements with Sir Stelios and easyGroup IP Licensing Ltd (a subsidiary of easyGroup Holdings Limited) as described in the Circular to shareholders dated 16th November 2010.

"To the extent that any activity of Fastjet, Sir Stelios or any company controlled by him infringes or would infringe those rights, easyJet will take necessary action to protect the rights of easyJet and the interests of its shareholders."

Sir Stelios has declined to comment on the new venture. He recently withdrew his call for an emergency general meeting to remove a member of the easyJet board.