Ryanair Launches New Bid For Aer Lingus | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne/NBAA2014 10.24.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.24.14 **
** Airborne/NBAA2014 10.22.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.22.14 **
** Airborne/NBAA2014 10.21.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.21.14 **
** Airborne/NBAA2014 10.20.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.20.14 **

Wed, Dec 03, 2008

Ryanair Launches New Bid For Aer Lingus

This Time Around, Gov't Willing To Talk

What a difference two years and a deep recession can make.

In 2006, Irish low-cost carrier Ryanair made a run at acquiring its only major domestic rival, Irish flag carrier Aer Lingus, for about 1.5 billion euro. The economy was booming, Ireland was awash in tax revenue... and the government, unions, management and shareholders of Aer Lingus all hated the deal, so it went nowhere, even though Aer Lingus was losing money.

The Wall Street Journal reports Ireland is now sharing in the deep worldwide recession, the government is running deficits, Aer Lingus is still in the red, and Ryanair is back again. But this time, the offer is only half the amount offered two years ago.

The unions and executives of Aer Lingus are still opposed... but this time around, despite the much lower offer, the government says it will look the deal. Holding roughly a quarter of the company shares, the government's position is seen as crucial.

Ryanair CEO Michael O'Leary points out that economic upheaval and continuing consolidation in Europe's airline industry leave no chance for Aer Lingus to remain viable on its own. Amid concerns for consumers, he points out that Aer Lingus has increased fares and added fees since his last offer.

"The world has changed" since 2006, O'Leary said. "We think what will be most influential to EU regulators will be the Irish government's attitude... Our focus this week will be on persuading the Irish government and Aer Lingus the benefits of the deal."

He adds employee shareholders would get more than 137 million euro in cash, and the government more than 188 million, if the bid is successful. He also thinks he can create a thousand new jobs over the first few years of combined operations.

Ryanair has asked for a meeting with the board of Aer Lingus as soon as possible to explain its position.

FMI: www.ryanair.com, www.aerlingus.com

Advertisement

More News

Airborne 10.24.14: AML's Innovations, NASA Preps For Mars, LightHawk Saves

Also: AW609 Pilots Honored, Airbus' VIP Cabin, FreeFlight's FTX-200, Quicksilver S-LSA Milestone During our visit this week to NBAA 2014, Jim Campbell had a chance to talk with Mar>[...]

Airborne at NBAA-10.22.14: Legacy 500, Universal InSight, BendixKing AeroWave

Also: GE Honda, Sagem's Active SideStick, Syberjet Update, Techno Aerospace Knows How to Party The FAA handed over certification papers for Embraer's Legacy 500 executive jet durin>[...]

Airborne 10.24.14: AML's Innovations, NASA Preps For Mars, LightHawk Saves

Also: AW609 Pilots Honored, Airbus' VIP Cabin, FreeFlight's FTX-200, Quicksilver S-LSA Milestone During our visit this week to NBAA 2014, Jim Campbell had a chance to talk with Mar>[...]

AD: Pacific Aerospace Limited Airplanes

AD NUMBER: 2014-21-02 PRODUCT: Pacific Aerospace Limited Model FU24-954 and FU24A-954 airplanes.>[...]

ANN's Daily Aero-Linx (10.25.14)

The Canard Zone An online forum by and for owners and builders of canard aircraft.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC