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London, United Kingdom: British low-cost carrier easyJet has rejected a third takeover proposal from the U.S.-based investment firm Castlelake, prompting the investor to take its bid public days before a regulatory deadline that could determine whether a formal offer materializes. Castlelake's latest proposal values easyJet at approximately £4.7 billion ($6.3 billion), offering shareholders 625 pence per share in cash. The airline's board unanimously rejected the approach, describing it as "highly opportunistic" and stating that it "fundamentally undervalues easyJet and its medium-term prospects." The public disclosure marks a significant escalation in the takeover battle after weeks of private discussions and rejected proposals. According to documents released by both parties, Castlelake initially approached easyJet with a non-binding proposal of 560 pence per share. After that offer was rejected, the investment firm returned with a second proposal at 600 pence per share before ultimately increasing its offer to 625 pence per share. The latest proposal was submitted on June 20 and rejected by easyJet's board on June 21. Castlelake said it decided to go public because the airline had repeatedly declined to engage meaningfully with the firm despite multiple approaches. The company stated that the third proposal represented a substantial premium to easyJet's market value before takeover speculation emerged, arguing that shareholders should be given the opportunity to consider the proposal. In its response, easyJet said the proposal arrived during a period when the airline sector was facing temporary pressures linked to geopolitical instability and rising fuel costs. The board said, "It believes that the proposal is highly opportunistic and fundamentally undervalues easyJet and its medium-term prospects." The airline added that Castlelake's valuation relied heavily on short-term market conditions rather than the company's long-term earnings potential, strategic position, asset base and growth plans. Directors also raised concerns regarding what they described as an opaque acquisition structure, uncertainties surrounding future financing arrangements and questions about regulatory implementation. The board concluded that accepting the proposal would not be in the best interests of shareholders. Castlelake's proposal is structured as an all-cash offer for easyJet shares. The firm also included a partial alternative under which shareholders could elect to receive unlisted, non-transferable and non-voting equity interests in a Castlelake-controlled acquisition vehicle instead of cash for a portion of their holdings. According to disclosures, the proposed ownership structure would consist of: • 49% ownership by Castlelake funds. • 51% ownership by European Union nationals and other investors. The structure was designed to satisfy European airline ownership regulations, which require EU airlines to remain majority owned and controlled by EU interests. To achieve compliance, Castlelake partnered with former easyJet Chief Operating Officer Peter Bellew and aerospace executive Mark Breen, who would participate in the EU-controlled ownership arrangement. The investment firm said the structure had been specifically designed to preserve easyJet's European operating rights and regulatory approvals. easyJet, however, expressed reservations about the proposed arrangement. The airline said the structure lacked transparency and created uncertainty over who would ultimately exercise control over the carrier. The board also questioned how the ownership model would operate in practice and whether it would satisfy regulatory requirements across the jurisdictions in which easyJet operates. Castlelake rejected those concerns and said its proposal was fully compliant with applicable regulations. The investment firm stated that it had no intention of dismantling easyJet's operations and instead sought to support future growth. Castlelake said the proposed acquisition would be funded through a combination of equity and debt financing. The company disclosed that Goldman Sachs had indicated its ability to arrange the required debt facilities. The firm added that the proposal was expected to be fully funded if a formal offer proceeded. Castlelake currently manages approximately $36 billion to $38 billion in assets globally and has extensive experience investing in aviation-related businesses. Its previous aviation investments have included Scandinavian Airlines (SAS), while it has also explored opportunities involving U.S.-based carriers. Under the UK Takeover Code, Castlelake has until 5:00 p.m. on June 26, 2026, to either: • Announce a firm intention to make an offer for easyJet; or • Confirm that it does not intend to proceed. Any extension would require approval from the UK Takeover Panel. As of the latest disclosures, Castlelake stressed that no formal offer had yet been made and that there remained no certainty a definitive bid would ultimately emerge. Several major shareholders appear unconvinced that the current offer adequately reflects easyJet's value. According to reports, investors believe meaningful engagement would likely require a proposal of at least 700 pence per share, implying a valuation exceeding £5.3 billion. That figure would be roughly £600 million higher than Castlelake's current proposal. Investors point to easyJet's extensive aircraft fleet, valuable airport slots, strong balance sheet and rapidly expanding holidays division as reasons the airline should command a higher valuation. The airline has repeatedly highlighted its medium-term growth plans as justification for rejecting the proposal. easyJet believes investments in newer, more fuel-efficient aircraft, operational improvements and expansion of its holidays business could support significantly higher profitability in coming years. The company has previously outlined ambitions to generate annual profits approaching £1 billion over the longer term. Management argues that the current proposal fails to capture the value of those future earnings opportunities. Market attention has increasingly focused on easyJet founder Sir Stelios Haji-Ioannou, whose family retains approximately a 15% shareholding in the airline. While Castlelake's proposal includes mechanisms that could appeal to long-term investors, Haji-Ioannou has not publicly indicated whether he supports or opposes the bid. For now, easyJet's board remains firmly opposed to the proposal, maintaining that the airline's long-term value, growth prospects and strategic position justify a substantially higher valuation than the one currently on the table.

EasyJet Rejects Third £4.7 Billion Takeover Bid From US Based Castlelake Firm

Aviation Today News Desk / June 23, 2026

London, United Kingdom: British low-cost carrier easyJet has rejected a third takeover proposal from the U.S.-based investment firm Castlelake, prompting […]

United States

Global Jet Fuel Crisis Deepens As US Airlines’ Fuel Costs Surge 56% In March

Aviation Today News Desk / May 7, 2026

Washington, United States: The sharp surge in global jet fuel prices triggered by the Iran conflict and Strait of Hormuz

SpiceJet

SpiceJet Warns Of Collapse Amid $17M Court Battle And Mounting Debt Pressure Crisis

Aviation Today News Desk / April 15, 2026

Gurugram, India: India’s low-cost carrier SpiceJet has told the Delhi High Court that it faces a serious risk of operational

IndiGo

IndiGo Appoints IATA Chief Willie Walsh As CEO Following Crisis & Pieter Elbers’ Exit

Aviation Today News Desk / April 1, 2026

Gurugram, India: India’s largest airline, IndiGo, announced on March 31, 2026, the appointment of Willie Walsh as its new Chief

Airlines

Allegiant To Acquire Rival Sun Country In $1.5 Billion Deal, Expanding Leisure Network

Aviation Today News Desk / January 12, 2026

Las Vegas, United States: U.S. low-cost carrier Allegiant Travel Company has reached a definitive agreement to acquire rival Sun Country

New Delhi, India: British Airways has announced a strategic expansion of its operations in India, reinforcing its commitment to one of the world’s fastest‑growing aviation markets and deepening ties between the United Kingdom and India. The airline confirmed plans to enhance its India‑UK connectivity with expanded flight frequencies, service upgrades, and broader market engagement, reflecting rising travel demand and the nation’s increasing importance as a global travel hub. British Airways plans to introduce a third daily service between London Heathrow and New Delhi starting in 2026, pending regulatory and slot approvals. Currently, the carrier operates two daily flights on the Delhi–London sector alongside multiple services to other Indian cities, including Mumbai, Chennai, Bengaluru and Hyderabad. The additional daily frequency is part of a broader expansion strategy aimed at supporting growing passenger traffic between India and the UK, particularly for business, education and leisure travel. In parallel with network growth, British Airways is reintroducing its First Class cabin on select Mumbai services and plans to deploy its latest Club Suite business‑class product across all major India routes by the end of 2026. These enhancements signal a targeted effort to elevate the customer experience and cater to premium travel demand. Industry observers note that such product upgrades align with broader trends in international long‑haul markets, where passenger expectations for comfort and service are rising, particularly on transcontinental routes. British Airways executives have described India as one of the airline’s most dynamic and strategically important markets, second only to the United States in terms of overall demand. The expansion reflects enduring bilateral links and increased economic interaction following the UK‑India Free Trade Agreement signed earlier this year. Beyond connectivity, the airline’s engagement extends to local employment and infrastructure, with facilities such as customer support centres in Gurugram that underscore long‑term commercial commitment. India’s aviation sector continues to grow robustly, recently ranking as the world’s fifth largest aviation market with over 240 million passengers in 2024, according to International Air Transport Association data, a testament to strong domestic and international travel demand. Industry expansion is not limited to foreign carriers. Indian airlines like IndiGo and Air India have also been scaling international operations, including new long‑haul services to Europe and beyond, intensifying global connectivity. With accelerating global mobility, British Airways’ expanded footprint in India represents a calculated growth strategy designed to capture rising demand on one of the world’s most vibrant aviation stages. By augmenting flight frequencies, enriching onboard products and bolstering customer support infrastructure, the airline aims to reinforce its competitive positioning while strengthening UK‑India travel and trade links.

Airlines

British Airways Plans Major Expansion In India’s Growing Aviation Market By 2026

Aviation Today News Desk / December 14, 2025

New Delhi, India: British Airways has announced a strategic expansion of its operations in India, reinforcing its commitment to one

Kuala Lumpur, Malaysia: Industry associations in Malaysia are raising the alarm over proposals to ban alcoholic beverages on flights operated by Malaysia Airlines (MH), warning that such a move risks undermining the country’s global reputation as a tolerant and inclusive tourism destination. At the crux of the debate is a call from a member of parliament from the Parti Islam Se‑Malaysia (PAS), who has urged Malaysia Airlines to cease serving alcohol on its flights, citing religious concerns and the welfare of Muslim cabin-crew. The Malaysian Association of Tour and Travel Agents (MATTA) has publicly voiced concern that banning in-flight alcoholic drinks would send the wrong signal to international travellers. MATTA president Nigel Wong stated, “Malaysia is known as a moderate tourism country. We emphasise values like tolerance, acceptance, and inclusiveness. That’s what makes Malaysia so appealing as a tourism destination.” Meanwhile, the Malaysian Tourism Federation (MTF) president Sri Ganesh Michiel urged stakeholders to consider the airline’s service strategy before leaping to conclusions, pointing to the need for Malaysia to remain competitive and welcoming to global travellers. Tourism stakeholders argue that in-flight alcohol service is less about indulgence and more about meeting the expectations of international passengers accustomed to full-service carriers. According to industry commentary, mandating a blanket ban could weaken Malaysia Airlines’ appeal and, by extension, harm the broader tourism ecosystem. One critic, Wong Soon Koh of the Borneo Post Online, described the MP’s call as “ignorant and short-sighted”, cautioning that Malaysia Airlines needs to cater to an international clientele and cannot afford to appear to be retreating from global service norms. The discussion intensifies amid preparations for the “Visit Malaysia 2026” campaign, where Malaysia seeks to boost tourism inflows and emphasise its status as an open, multicultural destination. Industry voices say any abrupt policy shifts that appear to constrain service norms may cast doubt on that message. The alcohol-service controversy emerges against the backdrop of earlier scrutiny over an event hosted under the banner of Tourism Malaysia which included alcohol, which drew criticism from conservative quarters. While the PAS MP’s call has stirred debate, there is no indication that a formal directive or policy change has been approved by Malaysia Airlines or the Ministry of Transport (Malaysia) at this stage. Tourism bodies are urging caution and consultation, arguing that service standards and competitiveness should not be compromised without comprehensive impact assessment.

Airlines

Malaysia’s Tourism Industry Raises Alarm Over Proposed In-Flight Alcohol Ban

Aviation Today News Desk / October 21, 2025

Kuala Lumpur, Malaysia: Industry associations in Malaysia are raising the alarm over proposals to ban alcoholic beverages on flights operated

airline business

EasyJet Rejects Third £4.7 Billion Takeover Bid From US Based Castlelake Firm

Global Jet Fuel Crisis Deepens As US Airlines’ Fuel Costs Surge 56% In March

British Airways Plans Major Expansion In India’s Growing Aviation Market By 2026

Malaysia’s Tourism Industry Raises Alarm Over Proposed In-Flight Alcohol Ban

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