Easyjet news

[Tetchytyke]

I would have thought the EU would be unhappy with any significant loans from outside the EU if it meant that control actually did vest with Castlelake, as Bellew et al were effectively puppets and took directions from Castlelake (or another ex-EU company).

It's an interesting one. Even if it is a leveraged takeover, that doesn't mean that Breen and Bellew (or whoever) are not the owners of the shares. It's no different to any other type of secured loan, really; I have a mortgage but it doesn't mean the bank owns my house.

The real question would be how the investors would intend to repay the loans. One presumes it'll be in the classic US hedge fund style: load EasyJet up to the hilt in debt and use that debt to pay dividends which repay the loans.

I can see why EasyJet call it "opaque" though. I think any EasyJet shareholder who votes for this would be mad. I can see a few being tempted to cash in though.

 

[gabrielhj07]

Peter Bellew has been an unmitigated failure in at least 3 airlines. The further he stays from easyJet the better.

 

[brad465]

Looks like the takeover is happening. We'll be soon discussing this story further in the "Companies you expect to disappear soon" thread, given Private Equity's habit to hollowing out everything it touches:

EasyJet agrees 'in principle' to £5.2bn takeover deal

The low-cost airline had previously rejected four takeover offers from US investment firm Castlelake.

www.bbc.co.uk

EasyJet has reached an agreement in principle with a US investment firm over a potential takeover offer worth around £5.2 billion.

The low-cost Luton-based airline had previously rejected four takeover offers from Castlelake, which owns a stake of about 2.14% in EasyJet through the funds it manages.

It said those offers had been worth £6.50, £5.60, £6 and £6.25 a share, and has previously accused Castlelake of trying to buy it "on the cheap".

On Sunday EasyJet's board of directors and Castlelake said they had reached an agreement in principle on a proposal put forward on 4 July, worth £6.90 per share.

This does not mean a deal has been confirmed. Castlelake now needs to get regulatory clearances and the approvals required for the transaction to go ahead.

One significant regulatory hurdle is that EasyJet is a European company, so by EU rules it needs to be 51% owned by a European company.

Castlelake is a US firm, although it has previously outlined how it would endeavour to comply with this rule.

It has until 17:00 BST on 3 August to either to announce a firm intention to make an offer or to say it does not intend to do so.

If an offer is made it would need to be put to a shareholder vote.

EasyJet's board on Sunday said the financial terms of the proposed offer "are at a value that the Board would be minded to recommend to easyJet shareholders", should a firm offer be made.

EasyJet is one of Europe's largest airlines. It employs more than 19,000 people, and flies around 1,200 routes across 35 European countries.

It has previously said its share price had been "temporarily depressed" - partly due to the impact of the US-Israel war with Iran on the travel sector.

EasyJet shares closed on Friday at £5.58 each. Before news of the first bid emerged in June, EasyJet's stock had fallen by more than 30% in the past year.

Castlelake has assets under management worth $36bn (£27.3bn).

Announcing the agreement in principle, EasyJet said Castlelake had "emphasised its tremendous respect for easyJet and its people, along with its intention to support its future growth and transformation to a stronger, more resilient European airline".

 

[Belfastmarty]

Looks like the takeover is happening. We'll be soon discussing this story further in the "Companies you expect to disappear soon" thread, given Private Equity's habit to hollowing out everything it touches:

EasyJet agrees 'in principle' to £5.2bn takeover deal

The low-cost airline had previously rejected four takeover offers from US investment firm Castlelake.

www.bbc.co.uk

Not great news. Expect Easy to be loaded with debt which will become a burden if trading dips or costs go through the roof.

 

[hi2u_uk]

I cant see anything good coming of this. I imagine this will mark the beginning of the end of an iconic British brand

 

[Sparks807Evo]

All will become clear in the coming days I am sure but a key factor is whether Stelios will still retain any shareholding. I would have greater faith in continuity if he does…

https://www.reuters.com/business/air-france-klm-signs-12-billion-credit-line-with-banks-2026-06-17/

June 17 (Reuters) - Air France-KLM (AIRF.PA), opens new tab has signed a ‌new credit line for €1 billion ($1.2 billion) with ⁠12 banks to refinance existing debt and fund the group's mergers and ‌acquisitions ⁠expected in the second half of this ⁠year, the company said on ⁠Wednesday.

It is not co-incidence that Air France - KLM did this last month. Yes, I know TAP Air Portugal is a key target but there is no guarantee of that given Lufthansa is also expected to bid for that.

My prediction is we are going to see status quo for a while - the business is financially solid. However, I would then expect based on a Castlelake interview with KPMG Ireland earlier this year that we see some movement - key points out of that interview (I will dig out a link) was that mid-life, older engined aircraft are undervalued, and are lower risk for investors, and that consolidation in the industry is a good thing. The new engined aircraft are a higher risk and offer less certainty for investors.

So, my reading from all this is that Castlelake start to cash in on the older aircraft ironically (not the new) and start to shift those into its leasing portfolio over time as NEOs come in, as they can be transitioned to other operators more easily. That brings in money. The airline can carry on bringing in profit alongside that by using the more fuel efficient yet less reliable NEOs.

Then we may either see - 1. Acquisition of other airlines perhaps (Wizz?) or 2. Other airline ownership explored? Perhaps some form of sell off to KLM of the airline and holidays business (or maybe MSC get involved - Freightliner still has overlapping branding despite different owners). Or, could we see a split where IAG buy UK and Swiss (given limited presence in UK regional market and Switzerland, that might pass the competition authorities) and KLM buy out the Europe arm to build their Italian, Portuguese presence etc. (particularly if they fail to buy TAP). Or vice versa - KLM buy UK and Swiss, and IAG Europe. Wizz seem a basket case currently so wouldn’t pin hopes on them buying anything but Norwegian might at the rate they are growing again.

Basically, the brand will continue in some form in some markets. Really I just hope for employees and customers sake that there is not too much messing about, and the strategy around delivering value at a fleet level means the airline part carries on mainly unaffected. I can see some of those slots being sold and lent for money to other airlines (they already do this for Virgin Atlantic).

 

[yorksrob]

There ought to be laws stipulating that any takeovers of companies should come with a large percentage (say 80%) of new money, rather than debt leveraged onto the company being purchased.

All foreign takeovers should also face a much tougher test of being in the National interest. The British economy is too much like a finger buffet for vultures.

This is the same weekend that ITV is being hoovered up by Murdoch as well.

 

[GRALISTAIR]

My niece is a FA for EasyJet. I will talk to her and get her take and report back.

 

[signed]

It is not co-incidence that Air France - KLM did this last month. Yes, I know TAP Air Portugal is a key target but there is no guarantee of that given Lufthansa is also expected to bid for that.

There is no certainty that Lufthansa buying TAP would actually succeed, assuming the regulators are actually competent which is a stretch

Lufthansa owns basically 5 of the major airlines of Europe already (LH, Swiss, Brussels Airlines, ITA, Austrian) and has very close ties with others (Aegean), AFKL only owns 3 airlines (AF and subsidiaries, KL and subsidiaries, SAS). In a normal world there is no way a LH purchase of TAP is even possible.

 

[Tetchytyke]

Castlelake are involved in the aviation leasing sector, so I would fully expect a wholesale sale-and-leaseback of EasyJet's aircraft to happen fairly quickly. The proceeds from this would then quickly be whisked off to the shareholders in dividend payments.

Whether this would be instead of loading EasyJet up with debt, or as well as loading them up with debt, who knows.

Either way, EasyJet are going to be hollowed out as soon as possible. It's the US private equity playbook.

It is interesting that the share price hasn't risen as much as you'd expect, clearly quite a few investors don't think it'll go through. I suppose it reflects the fact that, other than the aircraft, the only other main asset is the EasyJet brand, and EasyJet doesn't actually own the rights to its own brand. Stelios has been rather quiet.

All foreign takeovers should also face a much tougher test of being in the National interest. The British economy is too much like a finger buffet for vultures.

This is the same weekend that ITV is being hoovered up by Murdoch as well.

Sky's not owned by Murdoch, he cashed in years ago. It's owned by Comcast.

But yes, we're seeing time and again that US vultures are able to pick up UK companies at a discount and then hollow them out, all while the government stands there and lets it happen.

 

[gabrielhj07]

It is interesting that the share price hasn't risen as much as you'd expect, clearly quite a few investors don't think it'll go through. I suppose it reflects the fact that, other than the aircraft, the only other main asset is the EasyJet brand, and EasyJet doesn't actually own the rights to its own brand. Stelios has been rather quiet.

The brand, for whatever loyalty it may hold, is given too much credit in my opinion. Thomas Cook, Monarch, Britannia, Flybe, Midland, etc etc were all household names. People will move on fairly quickly if it disappears/is renamed.

 

[joncombe]

It would be sad to see Easyjet go but yes unfortunately I suspect it will be a sell off of the planes to lease back, probably closing some of the smaller bases and loaded with debt so probably more extra charges for passengers and probably more Ryanair tricks like deliberately splitting up groups and so on.

I think if this leads to increased prices they will be quickly squeezed by the competition. New laws in the EU (I think coming in next year) means the "headline" price airlines have to show has to at least include a cabin bag (not just underseat bag). Most of Easyjets routes are to/from EU countries. They can discount this far for an underseat bag only, but the initial fare shown has to include another bag. Easyjets' charges for cabin bags are quite high compared with the competition I think, which might already put them at a disadvantage when this comes in so any further price increases would be a bad idea.

However I do think if Easyjet do end up declining, downsizing or closing that the likes of Ryanair, Wizzair, Jet2 and perhaps Norwegian will be keen to expand and take advantage. Ryanair have already largely pushed them out of Stansted for instance. Jet2 have also recently opened a base at Gatwick and some of their routes already complete with Easyjet and they have over 100 A321 on order, so they seem to expanding quite rapidly (although some are to replace the very old 737-300s I think most are new) so I think they would be looking to fill any gaps Easyjet leave. There are also a lot of low cost airlines based in Europe that might see a weakened Easyjet as an oppurtunity to expand. BA might also expand at Gatwick too though I can't see them expanding to other airports, sadly.

 

[Tetchytyke]

The brand, for whatever loyalty it may hold, is given too much credit in my opinion. Thomas Cook, Monarch, Britannia, Flybe, Midland, etc etc were all household names.

Absolutely. Aviation history is full of famous airline brands which very quickly went from being household names to being insolvent and forgotten. Although, as TJ Jones are finding out, sometimes the brand matters more than you'd expect.

Easyjets' charges for cabin bags are quite high compared with the competition I think

EasyJet seem to have made a conscious decision with their cabin bag pricing to push people towards actually checking in their baggage. Cabin bags are, in my experience, usually cost about the same or even slightly more than a 15kg hold bag. Personally I think that it is sensible to push people towards putting luggage in the luggage hold.

EasyJet generally are more expensive than Wizz or Ryanair but the flip side of that is that their customer service is a lot better than with Wizz or Ryanair. But I can see a US hedge fund hollowing out the customer service and, yes, if EasyJet try and compete with Ryanair or Wizz on price alone they will lose.

 

[signed]

EasyJet has ditched Castlelake for another PE firm, instead backing Apollo's £5.7 billion bid

https://www.reuters.com/business/apollo-trumps-castlelake-with-765-billion-easyjet-bid-2026-07-10/

LONDON, July 10 (Reuters) - U.S. investment firm Apollo Global Management (APO.N), opens new tab launched a £5.7 billion ($7.7 billion) bid for easyJet (EZJ.L), opens new tab on Friday, trumping a rival offer from Castlelake and setting up a potential takeover battle ‌for one of Europe's biggest airlines.
EasyJet's board said it would back Apollo's £7.15-a-share proposal, withdrawing support for Castlelake's £6.90-a-share offer, which the parties had agreed in principle only days earlier.

Apollo's proposal, which it needs to firm up by early August, marks a bold attempt to outmanoeuvre Castlelake and take control of the three-decade old budget airline that has seen its stock price halve since the 2020 COVID-19 pandemic.
"It's no surprise that a second suitor has appeared for easyJet," said Chris Beauchamp, chief market analyst at investing and trading platform IG.
"The potential for the business remains substantial despite the underwhelming performance of recent years."
Castlelake said it was weighing its options regarding its possible offer, without providing any further details.

 

[takno]

EasyJet has ditched Castlelake for another PE firm, instead backing Apollo's £5.7 billion bid

https://www.reuters.com/business/apollo-trumps-castlelake-with-765-billion-easyjet-bid-2026-07-10/

Euch. If anything I suspect they're worse.

 

[joncombe]

Unfortunately it seems now that a sale is inevitable and it's just a matter of who the buyer is going to be.

 

[jagardner1984]

Suspect the announcement will be met with all sorts of grand reassurances that what always happens will not happen (remember Morrisons as it fades into obscurity anyone ?)

Before negligent politicians feign great surprise when the inevitable happens.

Whilst profitable routes will doubtless resurface in some form, there are lots of routes, particularly domestic and regional, where EasyJet is the only or primary carrier, I remember years back reading about what a powerhouse for the ethereal concepts of “growth” and “levelling up” the FlyBe network was in ways perhaps not immediately obvious to those in Whitehall with half a dozen super connected international airports less than an hour away - but it is hard to see a currently successful airline laden with vulture debt will bring any particular benefits to passengers currently using EasyJet services from Inverness, Aberdeen, Bristol, Belfast, Liverpool, Southampton, Glasgow and Edinburgh airports, where they are at least major, if not primary players, on routes poorly served by other modes.

I look forward to being proved wrong.

 

[Cloud Strife]

there are lots of routes, particularly domestic and regional, where EasyJet is the only or primary carrier,

The end result will probably be Loganair taking over the domestic routes (minus London-Edinburgh/Glasgow) with high prices, while anything that can be profitably operated by Ryanair or Wizzair regionally will be taken over by them, at least from the smaller airports.

It seems to be pretty much inevitable that EasyJet will be broken up, although I'd expect it to continue on "premium" routes on a vastly reduced route network. My expectation is that Luton will end up being dominated by Wizzair along with Ryanair at Stansted, and travellers going to Europe will essentially end up with very little choice. I wouldn't be surprised if Lufthansa come in to pick up the remains at Gatwick through one of their subsidiaries as well.

 

[Butts]

The end result will probably be Loganair taking over the domestic routes (minus London-Edinburgh/Glasgow) with high prices, while anything that can be profitably operated by Ryanair or Wizzair regionally will be taken over by them, at least from the smaller airports.

It seems to be pretty much inevitable that EasyJet will be broken up, although I'd expect it to continue on "premium" routes on a vastly reduced route network. My expectation is that Luton will end up being dominated by Wizzair along with Ryanair at Stansted, and travellers going to Europe will essentially end up with very little choice. I wouldn't be surprised if Lufthansa come in to pick up the remains at Gatwick through one of their subsidiaries as well.

Sincerely hope Loganair don't take over Edinburgh/Glasgow to Birmingham - got used to paying around £30 each way !!

 

[takno]

Sincerely hope Loganair don't take over Edinburgh/Glasgow to Birmingham - got used to paying around £30 each way !!

But for just 180 quid Loganair will give you a Tunnocks wafer and arrive so late it would've been quicker to get the train.

 

[Tetchytyke]

It seems to be pretty much inevitable that EasyJet will be broken up

Depends who wins the bidding war. The first hedge fund (Clearlake) looks quite asset-strippy but the second one (Apollo) simply think EasyJet are massively undervalued and don't intend on changing anything.

Sincerely hope Loganair don't take over Edinburgh/Glasgow to Birmingham - got used to paying around £30 each way !!

But for just 180 quid Loganair will give you a Tunnocks wafer and arrive so late it would've been quicker to get the train.

If you take any sort of luggage with you then Loganair really are not any more expensive than EasyJet.

As for delays, my longest ever delay back to IOM was EasyJet. We had to wait until it was convenient for them to operate our flight after a plane went tech (it wasn't even ours, ours just got nicked for another flight). A couple of weeks ago the 10am London flight from here eventually left at 7pm, apparently it was a bird strike and so not eligible for compensation; if you believe that, you'll believe anything.

 

[gabrielhj07]

apparently it was a bird strike and so not eligible for compensation; if you believe that, you'll believe anything.

Which bit don't you believe?

 

[Tetchytyke]

Which bit don't you believe?

EasyJet seem to have a lot of bird strikes when their planes go tech. Maybe they're just unlucky.

 

[gabrielhj07]

EasyJet seem to have a lot of bird strikes when their planes go tech. Maybe they're just unlucky.

Lot of birds in the sky. If it was the 26th June, I note that G-EJCE spent about 10 hours on the ground in IOM. Birdstrikes need a particular engineering inspection, the resources for which they probably don't have on the island.

 

[Cross City]

Lot of birds in the sky. If it was the 26th June, I note that G-EJCE spent about 10 hours on the ground in IOM. Birdstrikes need a particular engineering inspection, the resources for which they probably don't have on the island.

Yeah but that's much less fun that baseless conspiracy theories.

 

[takno]

If you take any sort of luggage with you then Loganair really are not any more expensive than EasyJet.

I don't

 

[gabrielhj07]

Yeah but that's much less fun that baseless conspiracy theories.

Not to say that airlines don't make stuff up; Aer Lingus would regularly 'break' 3 A320s back to back in the height of covid to consolidate passengers onto a single flight. But it's fairly easy to tell if it's a birdstrike. I once sat about for several hours in the middle of the night in Antalya waiting for 757 engineers to tidy up some remains.

 

[Tetchytyke]

Yeah but that's much less fun that baseless conspiracy theories.

I don't trust any airline to tell the truth about the real cause of delay in the era of EU/UK261. EasyJet tried to argue that their two planes colliding at Manchester was an incident outside of their control.

EasyJet also tend, in my experience, to put a lot of things down to weather, especially here. Everything else gets in and out but EasyJet decide the cancellation is because of forecasted bad weather and definitely not a tech issue or an aircraft shortage.

But it's fairly easy to tell if it's a birdstrike.

I was through the airport that day going somewhere else. The plane didn't have a mark on it (yes, I know not all bird strikes do leave a mark, especially if they've been ingested).

They don't have any engineering here, so any sort of tech issue would result in a delay. What are the chances that it's the one sort of tech issue which doesn't cost them £50,000 in compensation.

Maybe I am too cynical.

 

[gabrielhj07]

Sounds typical, bird bounces off without a scratch. Of all the things that could have delayed the return, that’s one of the least improbable.

 

[Butts]

If you take any sort of luggage with you then Loganair really are not any more expensive than EasyJet.

If you only take a Rucksack they are generally a lot dearer - EDI-BHX is almost a commuter route or short stay operation.

You'll be lucky to find a Loganair Flight from Central Scotland to the Midlands or Southampton for less than a Ton each way.