LCC disappointed by decision
Aer Lingus has recommended shareholders reject two motions by Ryanair calling for a cut in its non-executive directors' "bloated" fees.
The low cost carrier, which has a 29.8% stake in Aer Lingus, said it was disappointed by the decision.
It said its motions would have reduced the fees at the loss making national carrier from €730,000 in 2008 to a "still substantial" €141,000 this.
Ryanair said the decision "proves again that it is controlled by the Government and trade unions, leaving Ryanair - its largest shareholder - with no influence whatsoever.
It said the latest rejection of its suggestions was the fifth in two year.
Ryanair said it accepted the reality that the Irish government ran Aer Lingus and said it had given a proxy over its votes at the AGM on June 5 in favour of the minister for transport, Mr Noel Dempsey on the two resolutions covering non-executive fees.
Michael O'Leary, Ryanair's ceo, said Aer Lingus's refusal to reduce in recognition of the urgent need to cut costs, left the board with "little or no credibility when it comes to negotiating further cost reductions with its work force and trade unions in order to restore Aer Lingus to profitability."
He added: "With Ryanair's votes in his pocket, the minister for transport can now alone decide whether fees of over €15,000 per Board meeting are reasonable in the case of Aer Lingus' Non Exec Chairman or fees of €4,000 per Board meeting are reasonable in the case of Aer Lingus' Non Executive Directors, all of whom are either Government appointees or trade union appointees."
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