Airline meets with Irish transport minister
Ryanair has announced new guarantees in hopes of raising government and trade union support for its €748m takeover of Aer Lingus.
Following the Board of Aer Lingus rejection this week, hopes of a merger now lie with the Irish government and Aer Lingus employees, who own 25% and 14% stakes respectively.
However both strongly opposed Ryanair's first takeover attempt in 2006.
Ryanair appealed directly to Noel Dempsey, the Irish Minister for Transport on Wednesday (December 3), promising full state control over Heathrow slots and restoration of Shannon-Heathrow routes.
Both measures are "in line with Irish government national aviation policy," the airline said.
Ryanair also said it would "continue to honour and respect" Aer Lingus' trade unions, the leaders of which are trustees of the flag-carrier's 4,600-strong Employee Share Ownership Trust (ESOT).
Included was a legally binding guarantee that lucrative Heathrow slots could not be "sold, transferred, leased or switched to any other airline or to any other route without prior written government approval."
Promises to reduce Aer Lingus' short haul fares by 5% over three years and eliminate fuel surcharges were backed by two €100m bank guarantees.
Ryanair's first takeover attempt in 2006 was blocked by the European Commission which was concerned about the creation of an Irish monopoly.
The airline, which already owns a 29.82% stake in Aer Lingus, said fare reductions would save the consumer €140m a year and actually increase competition.
Neither Ryanair nor the EC commission have indicated whether the original EC ruling, still subject to an appeal, makes this take over possible or not.
The Board of Aer Lingus rejected the €1.40 per share offer earlier this week, recommending that stakeholders keep their shares.
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