Ryanair is offering more than 40 routes from Ireland’s major airports to other airlines as part of attempts to win approval for its takeover bid for Aer Lingus.
The European Commission is currently assessing Ryanair’s €694 million bid for Aer Lingus, which was launched in June, with a decision set to be made by competition chiefs in January 2013. Aer Lingus’ board is opposed to the takeover attempts as it claims Ryanair’s offer is too low.
Ryanair, which has twice failed in previous attempts to buy its Irish rival, said it was prepared to give up routes to and from Dublin, Cork and Shannon to other airlines in what it called a “radical package of remedies”. Negotiations with the EC are continuing on the issue.
The airline said in a statement: “This comprehensive remedies package includes a number of new airline bases in Dublin, new entrant competitors on over 40 routes to/from Dublin, Cork and Shannon, as well as specific competition solutions that guarantee increased price competition on routes to and from Ireland.
“Ryanair expects that the commission will shortly market test this transformational remedies package, and remains confident that its offer for Aer Lingus will receive competition clearance following any fair assessment by the commission.”
Ryanair added that it believed its case had been strengthened by other developments in the European airline market, such as last week’s announcement of 4,500 job losses at Iberia, IAG’s bid to buy Spanish carrier Vueling, and Aegean’s planned merger with fellow Greek airline Olympic.
“It is against this backdrop that Ryanair is proposing a merger that provides secure jobs, growth opportunities and financial benefits for all shareholders in a larger Ireland based EU carrier,” said Ryanair.
Ryanair has admitted it may have to sell its current 29.8 per cent stake in Aer Lingus if its bid for the entire company fails. Abu Dhabi carrier Etihad, which currently owns 3 per cent of Aer Lingus, has also talked about increasing its shareholding.