Easyjet could be about to launch a bid for fellow UK-based carrier Monarch, according to reports at the weekend.
The Sunday Times said that Easyjet was considering a possible bid for Monarch – both airlines are based at Luton airport.
Monarch Group is currently owned by Greybull Capital, which purchased the carrier from the Swiss-based Mantegazza family when Monarch was on the brink of collapse in 2014.
Greybull has managed to turn around Monarch’s fortunes and made a profit of £40 million last year, helped by the drop in fuel prices.
Deutsche Bank has been appointed by Greybull to look at “inbound and outbound opportunities” for Monarch, which currently focuses on the short-haul scheduled leisure market.
“The key focus of management and our shareholders, Greybull, remains the successful development and growth of Monarch,” said the group in a statement.
If Easyjet makes a bid for Monarch, reports suggest it could face competition from Chinese company HNA.
Monarch could also opt to expand with The Sunday Telegraph reporting that the airline is considering bids for other European carriers such as Air Berlin, Tuifly and Thomas Cook Airlines.
Easyjet has not commented on any potential bid for Monarch.