EasyJet has its eyes set on acquiring market share from British Airways
EasyJet has rejected an approach from Wizz Air, as the Hungarian airline continues its efforts to expand into the western European market on the back of the pandemic-induced downturn.
The airline confirmed it immediately rejected Wizz’s offer which was a “low premium and highly conditional” al-share deal.
The Financial Times reported that the name of the company making the offer, Wizz Air, was disclosed by someone briefed on the issue.
Johan Lundgren, CEO of EasyJet, has even said his company is exploring the possibility of expanding its operations to directly challenge the market share of British Airways. Funds would be raised by way of the £1.2bn rights issue.
Wizz’s approach, in addition to EasyJet’s plotting, displays the changing of the mood in the industry, as some airlines are looking to strike on the back of the worst crisis in their history.
“I think everybody would agree that when you go through situations like this, that there are consolidation plays happening,” easyJet’s chief executive Johan Lundgren said.
The EasyJet share price is down by 1.78% during the morning session on Friday, while the Wizz Air share price is down by 1.02%.
