EU to review airline ownership rules, threatening easyJet bids

The European Union is preparing a review of airline ownership rules to prevent foreign investors from gaining effective control of carriers, an EU official said, a move that could complicate U.S. bids for low-cost airline easyJet. 

Why it matters

EasyJet shares fell over 10% on the Reuters report. The EU review, previously unreported, would “protect strategic autonomy” to ensure control of regional carriers remains within the bloc, the official said. It comes amid a bidding war between two U.S. investment firms for the control of major European budget airline easyJet, which is likely to test the limits of EU rules that demand 51% local ownership.