Air France-KLM Group has expressed a clear interest in evaluating a potential stake in the British low-cost carrier (LCC) EasyJet, should it receive a proposal from private equity firm Castlelake. The conglomerate’s CEO, Ben Smith, highlighted the airline’s low market value and its strategic portfolio of takeoff and landing slots at key European hubs.
A Strategic Opportunity in the Low-Cost Sector
During a televised interview with Bloomberg at the International Air Transport Association (IATA) Annual General Meeting (AGM) in Río de Janeiro, Brazil, Ben Smith analyzed consolidation movements within the industry. When asked whether he would respond to a call from Castlelake to evaluate a joint transaction for EasyJet, the executive was categorical: “Oh, yeah, for sure. And I would expect all our competitors to do the same.”
Although Smith initially admitted that it was not a move they had delved into deeply, he acknowledged the enormous competitive advantages of the British low-cost carrier:
- Solid Track Record: He described EasyJet as a “very impressive” airline with a fantastic history of development.
- Financial Attractiveness: He noted that its current market capitalization is low, making it unsurprising that financial groups are interested in acquiring all or part of the company.
- Dominant Geographical Positions: He highlighted the airline’s strong presence in highly competitive markets such as Geneva and London Gatwick.
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Strategic Value of Slots at Key Hubs
The true core of interest for competitors lies in the robust connectivity infrastructure controlled by the British carrier.
Infrastructure and Regulatory Remedies
Smith described EasyJet’s slot portfolio as “quite impressive” and detailed three critical nerve centers of its network:
- London Gatwick: Where the airline maintains a historic base and a highly coveted volume of departure and arrival rights.
- Milan Linate: A terminal where EasyJet recently expanded its presence thanks to remedy slots that Lufthansa was forced to divest to secure regulatory approval for its acquisition of ITA Airways.
- Paris Orly: The CEO openly confessed to feeling a certain level of competitive discomfort regarding EasyJet’s position at this airport, which is a key hub for the French market.
Prior Synergies with Castlelake and Current Priorities
The business relationship between the Franco-Dutch group and the U.S. investment firm is not new, which facilitates strategic dialogue. Air France-KLM has a proven, positive track record with Castlelake as partners in the restructuring and investment process of Scandinavian Airlines (SAS).
The group acquired an initial 19.9% stake in SAS in 2023. Subsequently, in 2025, it announced its plan to increase that stake to 60.5% by purchasing the share packages held by Castlelake and Lind Invest—a transaction estimated to formally close in the second half of 2026.
Despite the openness to dialogue shown by Smith, official spokespersons for Air France-KLM clarified to Aviation Week that the group is not currently involved in any bid for EasyJet. The company emphasized that its institutional resources and focus are concentrated on two priority objectives:
- The privatization process of TAP Air Portugal, aiming to boost its presence in the lucrative transatlantic market between Europe and South America, particularly on routes to Brazil.
- Finalizing the corresponding regulatory procedures to assume majority control of SAS.
For now, Castlelake is in the initial stages of evaluating a potential formal bid for EasyJet, an intention it originally made public in May. The U.S. firm faces a strict regulatory deadline until June 26 to submit a firm proposal or withdraw from the race. For its part, EasyJet’s board of directors confirmed that it has not held talks with the investment fund but reaffirmed its willingness to evaluate any formal proposal should it materialize.
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