Qantas Archives - Aviation Today

London, United Kingdom: British low-cost carrier easyJet has agreed in principle to a sweetened takeover proposal from the U.S.-based investment firm Castlelake, valuing the airline at up to £5.5 billion (US$7.3 billion). If completed, the transaction would take one of Europe's largest budget airlines private and mark one of the aviation sector's biggest deals in recent years. The latest proposal values easyJet at 690 pence per share, representing a 73% premium over the airline's closing share price on 29 May 2026, the day Castlelake publicly disclosed its interest under UK takeover rules. The easyJet board said the revised proposal is at a level that it would be minded to recommend to shareholders if a firm offer is made, marking a significant shift after previously rejecting four lower bids. The agreement follows more than a month of negotiations. Castlelake initially revealed its interest in late May before progressively increasing its offers from 560p, 600p, 625p, and 650p per share, all of which were rejected by easyJet's board as materially undervaluing the airline. After rejecting the fourth proposal, the airline granted Castlelake limited access to commercial information, allowing the investor to conduct due diligence and improve its offer. Under the UK Takeover Code, Castlelake must submit a firm intention to make an offer by 3 August 2026, or withdraw unless an extension is granted by the UK's takeover regulator. The current agreement is therefore not yet a binding acquisition. The takeover would be one of the most significant ownership changes in European aviation. Headquartered at London Luton Airport, easyJet operates one of Europe's largest short-haul networks, serving more than 150 airports across the continent with a fleet of over 360 Airbus aircraft, comprising the Airbus A319, A320, A320neo and A321neo families. The airline is also a major customer of Airbus with a substantial outstanding aircraft order book supporting its long-term fleet renewal programme. Analysts believe these aircraft assets, together with valuable airport slots, are among the primary attractions for Castlelake. Industry analysts note that Castlelake is not a traditional airline operator but is a major aviation investor with extensive interests in aircraft leasing and aviation finance. The Minneapolis-based investment firm manages approximately US$38 billion in assets, leases aircraft to airlines including Qantas and Etihad Airways, and previously participated in the restructuring of Scandinavian Airlines (SAS). Analysts believe Castlelake's expertise in aircraft financing makes easyJet's fleet, aircraft order book and airport slot portfolio particularly attractive. Beyond its fleet, easyJet owns some of Europe's most valuable take-off and landing slots, particularly at capacity-constrained airports including London Gatwick, Paris Charles de Gaulle, Paris Orly and Geneva, assets that would be extremely difficult to replicate under current airport capacity restrictions. The airline's rapidly expanding easyJet Holidays business is also viewed as an important strategic asset capable of generating higher-margin revenue. One of the biggest hurdles facing the transaction is compliance with European Union airline ownership rules, which require EU airlines to remain majority owned and effectively controlled by EU nationals. To satisfy those regulations, Castlelake has proposed a structure in which it would own 49% of the acquisition vehicle while the remaining 51% would be held by European investors. The consortium includes former easyJet Chief Operating Officer and former Malaysia Airlines CEO Peter Bellew and aviation executive Mark Breen, former CEO of Arajet. Despite the board's support for the latest proposal, investors continue to price in execution risk. Following the announcement, easyJet shares climbed around 10%, reaching their highest level in almost four years. However, the stock continued trading well below the proposed 690p offer price, reflecting uncertainty surrounding financing, regulatory approvals, shareholder backing and the possibility of competing bids. Analysts at JPMorgan and other investment firms have said that while the revised proposal significantly improves the likelihood of a successful transaction, important details regarding funding arrangements and governance remain undisclosed. Some market observers have also suggested that rival airline groups could still emerge, although regulatory constraints would make any acquisition by another major European airline difficult. Lufthansa has been mentioned as a potential suitor but is currently focused on other acquisitions, while Wizz Air has also been cited, though analysts question whether it has the financial capacity for such a purchase. The position of easyJet founder Stelios Haji-Ioannou, whose family controls approximately 15% of the airline, is expected to be closely watched. He has not publicly indicated whether he intends to support the proposal, and his stance could prove influential during the shareholder approval process. The proposed acquisition comes against a challenging backdrop for the airline industry. Higher jet fuel prices, geopolitical tensions affecting energy markets, and softer consumer demand have weighed on airline profitability in recent months. easyJet had previously argued that earlier takeover proposals were "highly opportunistic", contending that its share price had been temporarily depressed by market conditions and did not reflect the company's medium-term earnings potential or strategic value. If completed, the acquisition would represent one of the largest private equity investments in European commercial aviation and could reshape the competitive landscape among the continent's low-cost carriers, including Ryanair, Wizz Air and easyJet. The coming weeks are expected to determine whether Castlelake can secure regulatory clearance, financing and shareholder approval before the August deadline.

British Airline EasyJet Backs £5.5 Billion Castlelake Takeover Proposal In Principle

Aviation Today News Desk / July 7, 2026

London, United Kingdom: British low-cost carrier easyJet has agreed in principle to a sweetened takeover proposal from the U.S.-based investment […]

Airlines

Qantas Airways To Pay A$105 Million To Settle COVID Flight Cancellation Lawsuit

Aviation Today News Desk / March 13, 2026

Sydney, Australia: Australian flag carrier Qantas Airways has agreed to pay A$105 million (about US$74 million) to settle a class-action

Airlines

Qantas Data Breach Exposes 5.7 Million Records, Potential Fines May Exceed $7 Billion

Aviation Today News Desk / October 15, 2025

Sydney, Australia: Qantas has confirmed that a cyber incident occurred in early July 2025, compromising up to 5.7 million Qantas

Canberra, Australia: QantasLink has announced plans to close its bases in Canberra, Hobart, and Mildura by April 2026, affecting approximately 70 pilots and cabin crew members. The airline states that this decision follows a comprehensive review aimed at consolidating operations to enhance service reliability, especially with the introduction of new aircraft like the Airbus A220 and Q400 turboprops. In response, the Transport Workers Union (TWU) has strongly criticized the move, arguing that it prioritizes profits over people and will harm regional communities and staff stability. A survey conducted by the TWU, Australian and International Pilots Association (AIPA), and the Australian Federation of Air Pilots (AFAP) found that 68% of affected pilots would need to consider other employment if the bases closed, with one in five already impacted by recent closures in Perth and Cairns. The closures come as QantasLink posted near-record profits of $2.39 billion. The airline was recently fined a record $90 million by the Federal Court for illegally outsourcing 1,800 ground workers. Despite the base closures, Qantas will continue to employ over 120 staff at its Hobart Contact Centre and plans to hire an additional 13 employees soon Political leaders, including Transport Minister Catherine King also criticized the closures, urging Qantas to reconsider and safeguard local jobs. QantasLink CEO Rachel Yangoyan maintains that the consolidation of crew bases into major airports like Sydney, Melbourne, and Brisbane will enable the airline to deliver more reliable services and better respond to disruptions. “The airline is offering a comprehensive support package to affected employees, including assistance with commuting and relocation options, to help them continue living in their current cities while working from a major base”.

Airlines

QantasLink to Shut Canberra, Hobart, and Mildura Bases by 2026 Amid $2.39B Profit

Aviation Today News Desk / October 3, 2025

Canberra, Australia: QantasLink has announced plans to close its bases in Canberra, Hobart, and Mildura by April 2026, affecting approximately

Canberra, Australia: In a landmark move, Qantas has launched commercial operations with its first two Airbus A321XLRs, becoming the first airline in the Asia-Pacific region to introduce the model into revenue service. The aircraft, designated “Great Ocean Road” (VH-OGA) and “Outback Way” (VH-OGB), commenced service on 25 September, initially operating the Sydney–Melbourne and Sydney–Perth routes. The names reflect the airline’s tradition of celebrating Australia’s iconic landscapes. Qantas Group CEO Vanessa Hudson noted the scale of preparation required for the launch: “Preparing for these commercial flights has taken an enormous effort, with nearly 350 training flights and more than 40,000 hours of training completed, as well as thousands of pieces of equipment deployed across our network.” Beyond its domestic deployment, the A321XLR’s extended range opens up new possibilities. With a maximum range of approximately 8,700 km, about 3,000 km beyond that of the Boeing 737-800, the aircraft is seen as a bridge between domestic and short-to-medium international flights into Southeast Asia and beyond. Hudson said Qantas plans to roll out the jets on additional domestic and international routes as more units enter service. The two aircraft carry 197 seats in a two-class format 20 in Business and 177 in Economy which amounts to a 13 percent increase in capacity compared to Qantas’s 737-800 fleet (without reducing seat pitch). Notably, the number of Business seats has increased by 66 percent over earlier models. The A321XLRs are powered by Pratt & Whitney Geared Turbofan engines. Looking ahead, Qantas expects to receive a third A321XLR in November 2025, bringing the total in service to seven by June 2026. In August 2025. Earlier Qantas placed an order for 20 more A321XLRs, pushing its total commitment to 48 aircraft. These aircraft form a key component in Qantas’s largest-ever fleet renewal program, which totals more than 200 firm orders plus additional purchase options from both Airbus and Boeing.

Airlines

Qantas Becomes First Asia-Pacific Airline to Launch Commercial Airbus A321XLR Flights

Aviation Today News Desk / September 26, 2025

Canberra, Australia: In a landmark move, Qantas has launched commercial operations with its first two Airbus A321XLRs, becoming the first

Airlines

On-Time Flights Remain a Struggle for Australia’s Airlines, Govt Report Reveals

Aviation Today News Desk / September 19, 2025

Canberra, Australia: Recent data from the Australian Bureau of Transport Research and Economics (BITRE) has shed light on the punctuality

Sydney, Australia: Australia’s domestic aviation sector is struggling to match seat supply with surging passenger demand, with the Australian Competition and Consumer Commission (ACCC) warning that capacity remains below pre-pandemic levels despite a full recovery in travel volumes. According to the ACCC’s Domestic Airline Competition in Australia report released in August 2025, seat capacity in June was 2.8% lower than in June 2019, even though passenger numbers had fully recovered and, in some cases, exceeded pre-COVID benchmarks. In May 2025, Australian carriers transported 5.20 million domestic passengers, up 1.6% compared with May 2019. The mismatch between supply and demand is evident in the load factor, the proportion of available seats actually sold which rose to 80.7% in June 2025 from pre-pandemic averages of about 78%. The ACCC noted that the capacity shortfall has kept airfares elevated. Although jet fuel prices dropped by 12.3% year-on-year, average fares in June 2025 were still higher than the same month last year. The regulator attributed this to limited seating availability, which has reduced the scope for last-minute fare discounts, particularly on peak routes. “The lack of significant competition and constrained supply means consumers are seeing fewer low-fare options,” the ACCC said in its report. The sector has shown notable improvements in operational reliability. April 2025 recorded an on-time arrival rate of 82.4%, the highest in three years and above the long-term average of 80.7%. Cancellations have also remained low, averaging under 2.2% in April and May, with a slight uptick to 2.4% in June. Jetstar and Virgin Australia achieved the best punctuality and cancellation performance, while Qantas reported comparatively higher cancellation rates. The capacity lag stems from a combination of structural and market factors. The collapse of Tigerair in 2020 removed a substantial share of low-cost capacity from the market. New entrants such as Bonza have struggled to establish sustainable operations, and Rex’s expansion on trunk routes has been limited. Global supply chain disruptions and manufacturing delays have also constrained fleet expansion. Aircraft delivery backlogs, driven by production issues at major manufacturers, have delayed capacity growth plans for both Qantas and Virgin Australia. Qantas Group is in the process of receiving additional aircraft, including narrowbody jets redeployed from Jetstar Asia. Virgin Australia expects delivery of six Boeing 737 MAX 8 aircraft by December 2025. However, much of the incoming fleet will replace older planes rather than significantly expand seating capacity. Industry analysts note that upcoming infrastructure developments could provide relief. Slot reforms at congested airports and the opening of Western Sydney International (Nancy-Bird Walton) Airport in 2026 are expected to improve access for both existing and new operators. The ACCC has repeatedly expressed concern over the high level of market concentration, with Qantas Group and Virgin Australia controlling more than 98% of the domestic market (The Australian, Aug. 12, 2025). The regulator has urged measures to encourage competition, warning that the duopoly limits consumer choice and pricing flexibility. While passenger demand has fully recovered from pandemic lows, Australia’s domestic aviation market continues to operate with constrained capacity. The ACCC expects gradual improvement as airlines take delivery of new aircraft and as infrastructure projects come online, but warns that pricing pressure may persist in the near term.

Airlines

Australia’s Aviation Market Faces Tight Capacity, but Not Enough Seats, ACCC Reports

Aviation Today News Desk / August 14, 2025

Sydney, Australia: Australia’s domestic aviation sector is struggling to match seat supply with surging passenger demand, with the Australian Competition

Qantas

British Airline EasyJet Backs £5.5 Billion Castlelake Takeover Proposal In Principle

Qantas Airways To Pay A$105 Million To Settle COVID Flight Cancellation Lawsuit

Qantas Data Breach Exposes 5.7 Million Records, Potential Fines May Exceed $7 Billion

QantasLink to Shut Canberra, Hobart, and Mildura Bases by 2026 Amid $2.39B Profit

Qantas Becomes First Asia-Pacific Airline to Launch Commercial Airbus A321XLR Flights

On-Time Flights Remain a Struggle for Australia’s Airlines, Govt Report Reveals

Australia’s Aviation Market Faces Tight Capacity, but Not Enough Seats, ACCC Reports

Follow Us

Quick Links

Navigate

General Support

News Desk Support

Follow Us