In a scheme document published this week, several unions across Europe have raised concerns about the planned takeover of easyJet by American private equity firm, Apollo Global Management. The concerns are largely focused on the structure of easyJet post-takeover as well as Apollo’s employment plans for easyJet staff. Despite this, the airline has said it is on track to close the deal before the end of the first quarter in 2027.
Union Opposition Raised Against Apollo’s Employment Plans
In a scheme document published on Oct. 15, as reported by Reuters, easyJet reported that multiple European unions had raised concerns over the airline’s imminent takeover by Apollo.
One of the central issues raised concerned Apollo’s plans for easyJet employees. According to the report, the takeover deal offered employees only 12 months of non-binding commitments. The European Works Council (EWC) was a notable objector to the deal because of these concerns:
“The EWC considers that the transaction, as structured, is likely to weaken easyJet’s long-term resilience and to expose employees across Europe to risks that are neither addressed nor mitigated by the assurances given.”
The British Airline Pilots’ Association, also known as Balpa, was another union to oppose the deal based on employment plans. Balpa represents easyJet’s 4000 members, and warned that a job guarantee of only 12 months had left easyJet employees feeling uneasy. In the scheme document published, Balpa had stated:
“Important questions remain regarding the long-term implications of the transaction. Balpa’s principal concern is the extent to which the transaction may affect employees beyond the 12-month period covered by the statements of intention. Employees require greater clarity regarding future workforce plans, pensions, operational strategy, productivity initiatives and the arrangements through which employees will be informed, consulted and engaged following completion of the transaction.”
Employee bodies in France, Spain and Portugal also declined to endorse the takeover, whilst others only adopted a neutral stance. The French Social and Economic Committee (CSE) union stated that the takeover terms looked to be extremely lucrative for executives whilst “onerous” for the airline employees.
Will easyJet Be Majority European Owned? Aviation Regulators Question Ownership
Another point of contention in the Apollo takeover of easyJet relates to the contentious matter of how easyJet’s ownership will be structured following the deal being approved.
These concerns have been raised by aviation regulators; Apollo and easyJet are now tasked with trying to convince aviation authorities that easyJet will remain majority owned and controlled by European interests in spite of its new American owner.
The European Union introduced stricter regulations about the ownership of airlines operating within Europe. Under current laws, airlines must hold at least 51% of their voting rights with European nationals or companies in order to maintain their operating licenses. As Apollo Global Management is an American firm, the company cannot own more than 50% of easyJet’s assets.
If the deal closes, Apollo will have a 49.9% stake in easyJet. The Haji-Ioannou family, founders and largest existing shareholder, will retain their 15.3% stake, and an EU Trust will hold up to a 5% share in the airline in order to maintain the airline’s flying rights.
easyJet has also confirmed it plans to hold court and shareholder meetings in November to begin the process to get the deal approved. It is expected to be finalised by the end of the first quarter of 2027, which roughly translates to the beginning of March.
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