Air France-KLM is positioning itself to regain customers who have shifted to easyJet, amid the ongoing uncertainty surrounding a potential £5.7 billion takeover of the British low-cost carrier. The Franco-Dutch airline group’s chief executive, Ben Smith, expressed confidence that Air France-KLM can attract back passengers by leveraging recent changes to its cost structure and service offerings.

EasyJet has long drawn travelers away from Air France and KLM, prompting the latter to overhaul its budget options. Smith acknowledged easyJet’s strong market position and operational efficiency, noting that the airline’s product had been a significant challenge for the group. “These are customers we’ve lost because of the attractiveness of their product,” he said, underscoring easyJet’s success in carving out a distinct niche.

The takeover bid for easyJet currently involves two U.S.-based financial firms: private equity firm Apollo and private credit group Castlelake. Last month, easyJet indicated a preference for Apollo’s £5.7 billion proposal, which values the airline at £7.15 per share, over Castlelake’s £5.5 billion offer at £6.90 per share. Under UK takeover regulations, Castlelake was required to submit any final bid by a deadline earlier this week, while Apollo’s deadline follows a few days later. Both groups are in the final stages of their bidding processes, which could extend into next year.

Should either bid succeed, the buyer is expected to implement significant changes at easyJet, potentially creating an opening for rivals to reclaim passengers. Although easyJet began as a budget airline focused on ultra-low costs, it has recently expanded its footprint into more premium, centrally located airports, which has led to increased ticket prices and intensified competition with traditional carriers.

Smith highlighted easyJet’s substantial presence at major hubs like Paris Charles de Gaulle, contrasting this with competitors such as Ryanair, which primarily operates from secondary airports outside city centers. He also praised easyJet for innovating with customer-friendly services, including fast boarding, bookable front-row seats, free baggage allowances, and lounge access at London Gatwick.

In response, Air France-KLM’s low-cost subsidiary, Transavia, has adapted its product offering to mirror many of easyJet’s innovations. The group has extended its “Flying Blue” loyalty program to Transavia and launched new routes from Paris Orly Airport, a lower-cost base. These strategic moves aim to provide a competitive alternative to easyJet’s evolving business model and help Air France-KLM recapture market share.