Although the takeover of EasyJet by US fund Castlelake is now in full swing, the airline’s French pilots are voicing their concerns. They condemn the lack of transparency and fears for their future.
On July 5, easyJet’s board of directors gave ” agreement in principle “for surgery. What about pilots who currently have no say in the matter? The latter, although to the great delight of investors the takeover of the British company by the American fund Castlelake is being formalized, they are very much not to their liking for the idea of such a merger. ” In the absence of a detailed industrial project and guarantees of employment, base and social model, we are against takeover “, instructs Tribune Jean-Marc Cioffi, President of the easyJet section of the National Union of Airline Pilots (SNPL).
Castlelake has been trying to take over easyJet, Europe’s second-largest airline, since early June. His fifth attempt appears to have convinced the operator’s board with a buyout offer of 690p a share. Or an estimate of £5.2 billion (€6.1 billion).
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The offensive, which is likely to be a major operation for European air transport, has seen share prices jump nearly 80% since mid-May. Castlelake has until Monday 3 August to make a binding offer. ” But during a takeover bid, we often forget about the social aspect, even though it is the people who keep the company running and make it profitable. “, said Jean-Marc Cioffi.
SNPL regrets the lack of transparency
The main complaint of easyJet’s SNPL unit, which represents 98.5% of the airline’s 572 French pilots (out of almost 6,000 within the company): a lack of information about Castlelake’s intentions. ” The offer at the moment is purely financial, without any guarantees of employment or vehicle fleet.Jean-Marc Cioffi regrets. We’re not against a buyout in principle, but nothing proves that an investment fund is necessary for the sustainability of an already viable company with solid assets and a plan to renew its fleet of nearly 280 aircraft on order. » Currently the operator operates 356 devices.
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The fears are justified by analyst scenarios and rumors that have been circulating for weeks, between dismantling, restructuring and piecemeal sales. ” This opacity is troublingadds Jean-Marc Cioffi. The buyer usually comes with a plan. Either the buyers want to keep the current structure and optimize it, or they have a plan to dismantle it to make a profit. We wanted transparency from both them and easyJet management. »
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On Tuesday, July 7, a meeting of the Social and Economic Committee (CSE) was also held with the participation of representatives of easyJet management and representatives of trade union organizations. ” The company’s management replies that they do not know Castlelake’s plan.“, says Jean-Marc Cioffi. It is alarming that management may accept a proposal without knowing the operational or social plan behind it. Or management is unwilling to provide the items it has. »
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Another concern expressed by the SNPL is that the proposed arrangement remains within European rules. To obtain an operating license, they require airlines based on the continent to be more than 50% owned and effectively controlled by EU member states or EU citizens.
Concerns about working conditions
However, Castlelake plans to create a company that will own 51% of the capital, with the backing of two Irish players: Mark Breen, an aviation entrepreneur, and Peter Bellew, a former Ryanair and easyJet executive but also a former Malaysia Airlines CEO. ” This investment “vehicle” should not be a mere empty shell on paper, but should exercise effective control, as also provided for by European regulations. “, warns Jean-Marc Cioffi.
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Otherwise, Castlelake could have free rein to do whatever it takes to maximize its profits. ” There are risks at the management level with potential performance pressures that may result in crew fatigue that may impact safety. “, Jean-Marc Cioffi worries.
The English Union is falling further behind
To date, no other union has raised the issue of an easyJet takeover. Britain’s main trade union remains cautious, the Tribune reports. ” Whoever owns the company, our priority will be to protect and improve the working conditions of our members as part of the continued, safe and professional operation of the airline. says Chris Jones, director of labor relations and employment policy at the British Airline Pilots Association (Balpa).
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The concerns of easyJet’s French pilots are reminiscent of those of some TAP Portugal pilots last spring, even if the configuration is completely different. While Lufthansa has been floated as a possible buyer, SPAC, the main union representing Portuguese airline pilots, has indicated its reluctance due to the social climate within the German airline. Firm proposals for this operation, which is also of interest to Air France-KLM, are expected before the end of July.