EasyJet is preparing to enter a new phase of its history as US private equity giant Apollo Global Management steps in with a £5.7 billion offer. The deal comes after rival bidder Castlelake formally withdrew from the process without giving a reason. Apollo had previously offered 715p per share, which was higher than the £640 offer that EasyJet’s board had provisionally accepted before Apollo entered the race. The company’s board, advised by Evercore, unanimously recommended Apollo’s bid.
EasyJet’s founder, Sir Stelios Haji-Ioannou, remains a key supporter of the deal and will retain his investment in the airline through the transition, according to ftnnews.com. The ownership structure has been carefully arranged to comply with EU rules that require the airline to remain majority owned by EU nationals. Under this plan, the Haji-Ioannou family and other large shareholders will hold between 45 and 49 percent of the company’s shares. An EU trust will also be allowed to own up to 5 percent of the company to meet regulatory requirements.
Eligible shareholders will also be given a chance to keep an indirect stake in the airline through a ‘stub equity’ option instead of cashing out entirely. EasyJet currently flies to 37 countries and serves 165 airports across Europe, North Africa and the Middle East. The airline carries more than 100 million passengers annually and has a portfolio of assets worth £3.05 trillion. Apollo’s acquisition adds to its existing aviation investments including stakes in Sun Country Airlines, Aeromexico, and cargo carrier Atlas Air.
The transaction is expected to close by the end of the first quarter of next year after receiving approval from EasyJet shareholders, UK courts, and aviation regulators. This move fits a broader trend of London-listed companies being taken private by US buyers in recent years. Industry analysts believe the acquisition could increase competition among Europe’s budget airlines like Ryanair, Wizz Air, and Jet2. The deal also signals renewed interest in other listed low-cost carriers with strong financials and limited airport slots.
Apollo is not new to the aviation industry, having previously invested in passenger airlines, cargo operations, and aviation services, according to a report from breakingtravelnews.com. The investment group’s experience in a volatile sector could help guide EasyJet through challenges like fuel prices, geopolitical issues, and fluctuating demand. Apollo has said it supports the current strategy of EasyJet and plans to keep its UK and EU headquarters in place. CEO Kenton Jarvis has described Apollo as a partner who can help the airline grow its business plans. However, there are signs that Apollo may look to expand EasyJet’s commercial offerings beyond its core flight services. This could include adding more ancillary revenue streams such as seat selection, extra baggage fees, and flexible ticket options.
The challenge for Apollo will be to increase earnings from customers without damaging the brand’s identity. EasyJet’s reputation is closely tied to value and simplicity, which makes any shift toward premium pricing delicate. Private equity ownership brings both freedom and pressure, as investors look for long-term returns while the company operates in a cyclical industry. The transition from public to private ownership also means management can make longer-term investments that may not show immediate results.
Sir Stelios Haji-Ioannou and his family will continue to hold their shares in the company under the new ownership structure. This arrangement helps maintain continuity between EasyJet’s entrepreneurial past and its future under private equity. It also addresses the complex legal requirements that govern airline ownership in Europe. The deal highlights how buying an airline is different from purchasing a typical business due to traffic rights and nationality rules.
This acquisition marks another significant shift in the UK aviation landscape as private investors take control of major airlines.
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