So far, EasyJet has shown a significantly slower recovery from the pandemic than its low-cost competitors.
The Hungarian low – cost airline Wizz Air filed under Reuters takeover bid for easyJet airlines. British carrier today in report for investors stated that it rejected the offer from an unspecified bidder for its low value. Wizz Air declined to comment.
The combination of the two low-cost carriers, which have only Airbus in their fleet, would create a strong rival, especially for Ryanair. But EasyJet has decided to reject the offer and instead get another £ 1.2 billion from shareholders to recover from the coronavirus pandemic. In his statement, easyJet stated that the offer significantly underestimated the company’s price. But the merger of the two companies makes some sense not only because of the unified fleet: easyJet is strong mainly in the western markets, Wizz Air in the eastern.
The capital increase is intended to help easyJet strengthen its balance sheet and enable a more aggressive pricing policy to revitalize air traffic. According to easyJet, a number of vacancies, so-called slots, have appeared on the market at key airports such as Paris, Milan and Amsterdam. “It’s a unique opportunity to get them, “ said easyJet boss Johan Lundgren. The carrier wants to take part of its market share from traditional airlines, but at the same time it is being attacked by low-cost competitors from Wizz Air and Ryanair. Both airlines have so far shown a faster recovery from the pandemic.
EasyJet expects to reach a capacity of 57% in the period from July to the end of September compared to the pre-pandemic situation. Ryanair already reported 75% of the number of passengers from 2019, Wizz Air even 85%. Due to the pandemic, EasyJet had to withdraw additional money from shareholders in June last year.
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