Air France-KLM is positioning itself to regain passengers who have migrated to easyJet amid the ongoing uncertainty surrounding a potential £5.7 billion takeover of the British low-cost carrier. The Franco-Dutch airline group sees the acquisition battle as an opportunity to attract travelers back to its network after years of customer losses to easyJet.

Ben Smith, chief executive of Air France-KLM, acknowledged that easyJet’s competitive product and pricing had posed a significant challenge, prompting the group to revamp its own low-cost offerings. “These are customers we’ve lost because of the attractiveness of their product,” Smith said, adding that the group is now confident it can win some of them back with a revised, cost-competitive service.

EasyJet’s planned takeover has attracted interest from two U.S.-based financial firms. Private equity group Apollo and private credit investor Castlelake have both submitted bids for the airline. Last month, easyJet indicated a preference for Apollo’s £5.7 billion offer, equating to £7.15 per share, over Castlelake’s most recent bid of £6.90 per share, valued at £5.5 billion. Pursuant to UK takeover regulations, Castlelake had until 5 p.m. on the final deadline day to submit a renewed bid, while Apollo’s deadline extends through Friday. Should either firm succeed, the transaction process is expected to extend into next year, with subsequent restructuring likely to open the market for competitors to target easyJet’s customer base.

Initially founded as a budget carrier with the mission to make flying as affordable as buying a pair of jeans, easyJet has shifted in recent years toward operating in primary airports, such as Paris Charles de Gaulle, which has raised ticket prices and positioned the airline more directly against legacy competitors that maintain higher operating costs. Smith noted easyJet’s strong presence in major airports, contrasting this with rivals like Ryanair that primarily use secondary airports situated further from city centers.

EasyJet has pursued a more premium model within the low-cost segment, introducing features appealing to business travelers, including fast boarding, front-row seating options, complimentary baggage allowances, and lounge access at London Gatwick. According to Smith, these innovations have influenced Air France-KLM’s own budget subsidiary, Transavia, which has adapted much of its product offering to align with easyJet’s approach.

To bolster appeal, Air France-KLM has integrated Transavia into its “Flying Blue” loyalty program and expanded services from Paris Orly, a lower-cost airport hub. These efforts reflect the group’s strategy to compete directly with easyJet’s evolving market position and reclaim passengers who drifted away amid easyJet’s growth.