Branch² Intelligence
Would an Easyjet takeover lead to a hike in the cost of flights? What you need to know about US buy-out
Key takeaway
US private equity interest in Easyjet signals potential consolidation in European budget aviation.
- Step 1US private equity firm expresses interest in acquiring Easyjet, triggering bid speculation.
- Step 2If acquisition proceeds, Easyjet's cost structure shifts as new owners seek higher returns, likely raising fares and reducing capacity on less profitable routes.
- Step 3Reduced competition on UK-European routes allows surviving carriers (Ryanair, Wizz Air) to raise prices, increasing travel costs for UK SMEs and consumers.
Source: This Is Money
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