Apollo's easyJet buyout faces union pushback ahead of first quarter 2027 close

By Yamini Kalia and Gianluca Lo Nostro

Oct 15 (Reuters) - EasyJet faces opposition from unions over its £5.7 billion ($7.5 billion) takeover by Apollo, though the airline says it remains on track to complete the deal before the end of the first quarter of next year.

In a scheme document published on Thursday, easyJet said unions across Europe had raised concerns about the airline's ownership structure after the takeover, with the European Works Council opposing the deal.

"The EWC considers that the transaction, as structured, is likely to weaken easyJet's long-term resilience and to expose employees across Europe to risks that are neither addressed nor mitigated by the assurances given," the council said in the document.

The EWC also said the deal provided employees with only 12 months of non-binding commitments.

Employee representative bodies in France, Portugal and Spain also stopped short of endorsing the acquisition, while others in Britain and Germany adopted a neutral position on its financial terms.

EasyJet said it had secured some regulatory approvals in Austria, Britain, France, Germany and Malta, although additional clearances remain outstanding in those countries as well as other jurisdictions.

EasyJet's shares were up 1.2% at 0755 GMT.

OWNERSHIP SCRUTINY

The document comes as easyJet and Apollo seek to reassure aviation regulators about the carrier's ownership structure, a key hurdle for a deal that could set a precedent for private-equity takeovers of Europe's tightly regulated airlines.

Apollo has sought to address those concerns through a governance framework designed to ensure easyJet remains majority-controlled by European interests.

The private-equity firm's strategy centres on expanding easyJet beyond its traditional no frills model, with plans for a new loyalty programme, premium travel products and additional revenue streams aimed at boosting customer spending.

EasyJet plans to hold court and shareholder meetings in the week starting November 9 to approve the deal, formally launching the court-sanctioned process that could remove the airline from the London stock market after more than 25 years.

($1 = 0.7557 pounds)

(Reporting by Yamini Kalia in Bengaluru and Gianluca Lo Nostro in Gdansk. Editing by Subhranshu Sahu and Mark Potter)