EU Tightens Airline Ownership Rules in Response to US Bids for easyJet

The European Union plans a review of airline ownership rules to prevent foreign investors from controlling regional carriers. This move affects U.S. bids for easyJet, amid fears of losing strategic autonomy. The review will address ownership structures and set precedents for EU airline policies.

The European Union (EU) is set to launch a review of airline ownership regulations to ensure foreign investors do not gain effective control over European carriers, according to an EU official. This decision could hinder U.S. investment efforts aimed at acquiring low-cost airline easyJet.

The previously unreported EU review seeks to maintain strategic autonomy within the bloc, particularly as two U.S. investment firms are engaged in a bidding war for easyJet. The EU mandates 51% local ownership, a rule that will be at the forefront of discussions in the context of these bids.

Shares of easyJet dropped by 8% following the initial report by Reuters. This move underscores the importance of reinforcing regulations to avert foreign dominance in the airline sector. The review aims to clarify permissible corporate structures concerning control and ownership to safeguard the regional airline industry’s strategic autonomy.