EU review of airline ownership rules clouds Apollo’s £5.7bn bid for easyJet

By the Editorial Team · Thursday, July 23, 2026

Shares of easyJet dropped sharply after the European Union announced plans to review airline ownership rules, putting the US-based Apollo Global Management’s £5.7 billion takeover bid at risk. The review seeks to reinforce EU control over airlines, signaling increased regulatory hurdles for non-European investors and casting uncertainty over cross-border acquisitions in the aviation sector.

Shares of easyJet fell sharply following reports that the European Union is set to review airline ownership rules, raising uncertainty over a proposed £5.7 billion takeover by US-based asset manager Apollo Global Management. The stock dropped as much as 14 percent before partially recovering to close down 12 percent.

The EU’s move aims to "clarify" current provisions intended to preserve "strategic autonomy" by restricting control of European airlines by non-EU investors. Under existing rules, airlines must be at least 50 percent owned by EU member states or nationals and controlled by Europeans—meaning EU investors must exert decisive influence over the airline’s operations. These requirements remain applicable to easyJet despite Brexit, due in part to its establishment of an Austrian subsidiary that allows the carrier to continue operating within the EU aviation market.

Earlier this month, easyJet’s board recommended proceeding with Apollo’s £5.7 billion offer, which surpassed a £5.5 billion bid from US private credit firm Castlelake. Both bids remain subject to regulatory approval, but the announcement of the EU ownership review has introduced fresh doubts about the deal’s prospects. According to a person close to the airline, EU regulators have not formally engaged with easyJet regarding either Apollo’s or Castlelake’s proposals.

The scrutiny echoes broader enforcement actions within the EU aviation sector. For example, International Airlines Group (IAG), the owner of British Airways, withdrew its 2024 bid to acquire an 80 percent stake in Spain’s Air Europa after competition concerns were raised by the European Commission.

Industry figures have expressed reservations about the potential changes. Luis Gallego, CEO of International Airlines Group, recently described an easyJet takeover as likely to be "very, very difficult" given the regulatory environment. Willie Walsh, head of the International Air Transport Association (IATA) and Gallego’s predecessor at IAG, emphasized that airlines already operate under some of the most stringent ownership regulations worldwide and suggested that any policy amendments should result from broad consultations with the airline industry.

EasyJet and Apollo declined to comment on the matter. Castlelake did not immediately respond to requests for comment. The ongoing review highlights the regulatory complexities and geopolitical considerations influencing foreign investment in European airlines.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.