Thursday, 9 September 2021

UK budget airline easyJet rejects WIZZ take over bid as founder mulls over new airline

The UK's travel industry newspaper,  TTG has reported that the Luton-based budget airline easyJet has rejected a take over bid from a rival low-cost airline, said to be Wizz Air.  According to various media sources, the unsolicited preliminary takeover approach has been rejected, however only after careful scrutiny and consideration. News that could make easyJet shareholders a tad nervous as it coincided with a £1.2 billion rights issue of new shares which devalues the airline, as well as a new hefty facility of credit to the amount of $400 million.

According to the low-cost airline, this money will give it the flexibility to capitalise on opportunities that now arise in the wake of the coronavirus pandemic.  It will also see the airline increase its fleet of Airbus aircraft.

Set against this barrage of changes at easyJet, its founder and shareholder Stelios Haji-Ioannou is on the verge of founding another budget carrier in Europe. Stelios has, according to reports, been incredibly unhappy with the direction the airlines current management are taking for some time and is seriously ready to create a new pan Europe airline. According to one source,  the 54-year-old Greek Cypriot entrepreneur's associates have already held talks with an aircraft manufacturer as well as some potential financial investors 

Stephen Hester, former boss of Royal Bank of Scotland and More Than insurance parent company,  will become the chairman of easyJet at the end of the year. Many see Hester's appointment as proof the airline is being made ready for a takeover or merger with another airline.

The future, may not be orange at all. 

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