British low-cost airline EasyJet’s proposed 5.7 billion pound (USD 7.5 billion) takeover by American private-equity firm Apollo Global Management has encountered opposition from employee representatives across Europe, raising concerns about the carrier’s long-term resilience and the protection of its workforce.
The British low-cost carrier, however, remains confident that the transaction will be completed before the end of the first quarter of 2027, according to a scheme document published on Thursday.
The European Works Council (EWC), which represents employees across the airline’s European operations, has opposed the acquisition, stating that the proposed ownership structure could expose workers to risks that have not been adequately addressed.
“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 council said in the document.
EWC has also raised concerns about the limited duration and nature of employee protections, noting that the commitments offered by Apollo under the deal were non-binding and would last for only 12 months.
EWC has also found support among the employee representative bodies in France, Portugal and Spain.
However, the latter stopped short of endorsing the acquisition.
Their counterparts in Britain and Germany, on the other hand, have adopted neutral positions on the financial terms, highlighting the mixed response to the proposed ownership change.
EasyJet, while taking note of the employee body’s opposition, said it had secured certain regulatory approvals in Austria, Britain, France, Germany and Malta.
“However, further clearances remain outstanding in those markets and other jurisdictions,” the low-cost carrier said.
The deal is already under the scanner of the aviation regulators due to its potential crossover with the restrictions that govern airline ownership and control in Europe.
The deal’s outcome could also set a precedent for future private-equity investments in Europe’s tightly regulated aviation sector.
Apollo has sought to address regulatory concerns through a proposed governance framework intended to ensure that easyJet remains majority-controlled by European interests.
The framework is central to securing approval for the transaction and allowing the airline to retain its operating rights under applicable ownership rules.
Apollo’s strategy involves expanding easyJet beyond its traditional no-frills model by introducing a loyalty programme, developing premium travel products and creating additional revenue streams.
The objective is to increase customer spending and diversify the airline’s sources of income, potentially strengthening its commercial position in a competitive European aviation market.
EasyJet plans to hold court and shareholder meetings from November 9 to seek approval for the transaction. The process could ultimately lead to the airline’s delisting from the London Stock Exchange after more than 25 years as a publicly traded company.
The acquisition now faces the twin challenges of winning shareholder approval and satisfying regulators while addressing concerns from employee representatives over the airline’s future ownership and workforce protections.