US-based investment firm Castlelake confirmed it is in the ‘early stages’ of weighing up a potential takeover offer for budget airline easyJet following recent speculation
A major investment firm has issued a statement and said it is considering a possible takeover bid for easyJet.
US-based Castlelake confirmed it is in the “early stages” of weighing up a potential offer for the budget airline following recent speculation.
The company stressed that “no approach has been made to the Board of easyJet” and warned there was “no certainty” that a bid would actually happen. Under takeover rules, Castlelake now has until June 26 to either announce a firm intention to make an offer or walk away.
The development comes just days after easyJet insisted it still plans to operate its full summer schedule despite fears over aviation fuel supplies linked to the Iran war.
EasyJet chief executive Kenton Jarvis said the airline had seen “absolutely no issues with fuel supply” at airports across the UK and Europe.
He told the BBC Today programme: “We’ve seen absolutely no issues with fuel supply at any of our airports in the UK, across Europe, or indeed beyond. We stay in very close contact with our fuel suppliers, airports, governments, and they are equally raising no issues looking forward.
“What is true is obviously there’s a lot less oil coming from the Gulf region, but fuel suppliers have successfully diversified with production increased in Norway, in West Africa, in the Americas. Refining capacity for jet fuel has also increased substantially outside of the Gulf region.”
The airline recently reported losses of £552 million for the first half of its financial year – a 40% increase compared with the previous year. Despite the losses, easyJet said demand for the summer holidays remains strong, with travellers continuing to book trips closer to departure dates.
Mr Jarvis said: “Demand seems to be very strong in what we call the late market. As we ran through April, demand was very strong for the month of April. We’re seeing it again in May.
“But as you look further out, people are more cautious. People are waiting and watching, but they are booking as as you approach, and I expect that strong late booking market to run through the summer.”
The airline has also faced disruption linked to the EU’s new biometric border checks. Mr Jarvis described delays caused by the entry-exit system as “completely unacceptable”.
“I’d encourage all the European countries is to use the flexibility that’s been given to them by the European Commission, that they can phase the introduction of this if they see queues in peak times,” he said.
“They can go back to normal border force control with stamping of passports, so they should use this.”
