Castlelake's proposed acquisition of easyJet could ultimately lead to the breakup of the budget carrier rather than its continued operation as a single airline, Bernstein analysts say in a note. The buyer's aircraft-leasing business is a key driver of the deal, with easyJet's owned fleet, aircraft orderbook, airport slots and profitable holidays division viewed as valuable standalone assets, they add. While Castlelake has publicly backed easyJet's growth strategy, the analysts expect these assets could eventually be sold separately, potentially reducing airline capacity across Europe. A smaller supply of seats would likely support ticket prices and benefit rival carriers, particularly low-cost airlines, the analysts say. The transaction could therefore be seen as potentially reshaping the European aviation market, with competitors emerging as the biggest long-term winners, they add. Shares trade 10.5% higher at 617 pence. (nina.kienle@wsj.com)