Unions oppose £5.7bn easyJet takeover by Apollo over job security concerns

European employee representatives have raised concerns over the proposed takeover of easyJet by US private equity firm Apollo Global Management, warning that existing employment commitments offer insufficient long-term protection.

easyJet’s board agreed to Apollo’s £5.7 billion takeover in August, after rival bidder Castlelake withdrew from the process.

The unions cited concerns over job security, employee protections and the airline’s future ownership structure.

The European Works Council (EWC), which represents easyJet employees across Europe, has formally opposed the acquisition, according to details published in the airline’s takeover documentation on Thursday, 15 October, as reported by Reuters.

The council warned that the proposed transaction could weaken easyJet’s long-term financial and operational resilience, leaving employees exposed to risks not adequately addressed by Apollo’s commitments.

“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,” Reuters quotes the council as saying in the scheme document.

Despite the objections, easyJet maintains that the acquisition remains on schedule for completion before the end of March 2027.

Unions seek stronger employment guarantees

The EWC has criticised Apollo’s proposed employment protections, which cover only 12 months and are not legally binding.

Employee representative bodies in France, Portugal and Spain have also declined to endorse the acquisition.

Representatives in the UK and Germany have adopted neutral positions on its financial terms.

UK unions previously raised similar concerns following the announcement of the takeover agreement in August.

In an official statement issued on 20 August, Prospect called for greater transparency over Apollo’s long-term plans, including how the acquisition would be financed and its potential effects on employment.

The union also expressed concern that easyJet could eventually be broken up and sold in parts.

“Prospect is calling for stronger and longer-term commitments to employment security, protection for collective bargaining arrangements and meaningful engagement with recognised trade unions throughout the period of ownership,” it said.

Prospect wants existing collective bargaining agreements maintained and employees consulted on significant organisational or operational changes.

Unite, which represents thousands of easyJet employees, including cabin crew, has also sought assurances from Apollo.

Unite general secretary Sharon Graham previously called for the proposed growth strategy to support well-paid, unionised jobs and protect existing roles. The union has engaged legal advisers to examine the acquisition proposals.

European ownership rules face regulatory scrutiny

The acquisition faces regulatory scrutiny over European airline ownership and control requirements, which were already a significant issue during the competing bids from Apollo and Castlelake.

Under European aviation rules, qualifying airlines must remain majority-owned and effectively controlled by eligible European interests to retain their operating rights.

Apollo, a US-based investment firm, has proposed a governance structure intended to ensure easyJet continues to satisfy these requirements following the acquisition.

According to Reuters, easyJet has received some regulatory approvals in Austria, the UK, France, Germany and Malta. Further approvals remain outstanding in those countries and other jurisdictions.

The ownership arrangements are particularly important because easyJet operates through several European airline entities, including easyJet UK, easyJet Europe and easyJet Switzerland.

Regulators must be satisfied that the proposed ownership and governance arrangements meet the applicable requirements for each operation.

Apollo plans changes to easyJet’s business model

Apollo entered the bidding in July with a £5.7 billion proposal that exceeded rival Castlelake’s offer, prompting easyJet’s board to reconsider its preferred buyer. The company agreed to acquire easyJet in August 2026.

The recommended cash offer values the airline at approximately £5.7 billion, with shareholders offered 715p per share.

Apollo has outlined plans to expand easyJet’s revenue opportunities beyond its established low-cost airline model.

These include introducing a loyalty programme, developing premium travel products and increasing revenue from additional services.

The proposed changes could broaden easyJet’s commercial offering, although detailed implementation plans have not yet been announced.

The acquisition would also end easyJet’s more than 25 years as a publicly traded company on the London Stock Exchange.

Shareholders to vote in November

EasyJet published its formal scheme document on 15 October, setting out the acquisition terms and timetable.

The airline has scheduled its court meeting and general meeting for 11 November 2026, when shareholders will vote on the proposed transaction.

EasyJet’s board continues to recommend the cash acquisition.

Completion remains conditional on shareholder approval, outstanding regulatory clearances and court sanction.

The airline expects the transaction to become effective before the end of the first quarter of 2027.