EasyJet takeover

[alangla]

Looks like they’ve accepted an offer from Castlelake https://www.bbc.co.uk/news/articles/cgjxx7ngz51o

What’s the thoughts? Beginning of the end or a new opportunity? What percentage of the fleet is owned versus leased? Owned fleet sold & leased back?

[Bradgate]

Beginning of the end, sadly. I don’t see how it’s possible for an airline, of all businesses, to succeed under PE ownership. If they run retailers & supermarkets into the ground (eg Debenhams, Asda, Morrisons) I don’t see how they can allow the level of vastly expensive training, maintenance, fleet renewal, marketing, IT investment etc which airlines need to remain competitive in what is the most cut-throat of all industries. Particularly for low-cost carriers which don’t have fortress hubs & all-powerful loyalty programs for frequent flyers, premium & corporate passengers.

It’s inevitable that the new owners will asset-strip the business by selling & leasing back the fleet thereby permanently increasing the cost base & destroying competitiveness. Staff salaries & working conditions will be squeezed which inevitably means that pilots & engineers will leave & management will struggle to replace them.

[captain_cynic]

Bradgate said:

Beginning of the end, sadly. I don t see how it s possible for an airline, of all businesses, to succeed under PE ownership. If they run retailers & supermarkets into the ground (eg Debenhams, Asda, Morrisons) I don t see how they can allow the level of vastly expensive training, maintenance, fleet renewal, marketing, IT investment etc which airlines need to remain competitive in what is the most cut-throat of all industries. Particularly for low-cost carriers which don t have fortress hubs & all-powerful loyalty programs for frequent flyers, premium & corporate passengers.

It s inevitable that the new owners will asset-strip the business by selling & leasing back the fleet thereby permanently increasing the cost base & destroying competitiveness. Staff salaries & working conditions will be squeezed which inevitably means that pilots & engineers will leave & management will struggle to replace them.

Isn't that the whole point of PE? Run something into the ground, extract all the money you can and then sell the corpse (bit by bit if you have to).