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09/12/2008
Aer Lingus Knuckles Down Over Ryanair Offer
Aer Lingus is fortifying its defences against the bold approach from Ryanair last week.
The airline's Chief Executive Dermot Mannion has announced the recent union agreement will mean the loss predicted for the end of year could be turned around due to its expected €50 million in cuts.
The Aer Lingus boss welcomed the outcome of the recent SIPTU ballot, which he said would provide significant cost savings, work practice changes and pay inflation moderation for the airline. Mr Mannion said: "Crucially, this transformational programme of change will provide an excellent platform for growth at each base in the future."
Following the union agreement, shares in Aer Lingus climbed to €1.58, in contrast to the Ryanair takeover bid valuation of just €1.40 per share.
Ryanair's previous takeover proposal in 2006 was rejected by the European Commission over its damage to competition, however, the company claims its current offer would not breach competition regulations.
A spokesman for Ryanair said: "In this announcement Ryanair outlines some of the details of its proposals in order to demonstrate how the Offer promotes and secures competition and how it will promote national aviation policy and perceived Irish Government concerns in that regard."
The airline announced it would restore Shannon-Heathrow connectivity, give the government control over London-Heathrow slots, and provide a €100 million bank guarantee that it would reduce Aer Lingus' short haul fares by 5% and eliminate the airlines fuel surcharge.
However, rebutting the new offer, a spokesman for Ryanair said: "Following a thorough review, the European Commission prohibited Ryanair's takeover of Aer Lingus on 27th June 2007.
"Ryanair is now appealing the European Commission prohibition. Consequently, this new lower offer is not capable of completion.
"Aer Lingus remains a strong business with significant cash reserves and a robust long term future. The Board believes that the Offer significantly undervalues Aer Lingus."
(DW)
The airline's Chief Executive Dermot Mannion has announced the recent union agreement will mean the loss predicted for the end of year could be turned around due to its expected €50 million in cuts.
The Aer Lingus boss welcomed the outcome of the recent SIPTU ballot, which he said would provide significant cost savings, work practice changes and pay inflation moderation for the airline. Mr Mannion said: "Crucially, this transformational programme of change will provide an excellent platform for growth at each base in the future."
Following the union agreement, shares in Aer Lingus climbed to €1.58, in contrast to the Ryanair takeover bid valuation of just €1.40 per share.
Ryanair's previous takeover proposal in 2006 was rejected by the European Commission over its damage to competition, however, the company claims its current offer would not breach competition regulations.
A spokesman for Ryanair said: "In this announcement Ryanair outlines some of the details of its proposals in order to demonstrate how the Offer promotes and secures competition and how it will promote national aviation policy and perceived Irish Government concerns in that regard."
The airline announced it would restore Shannon-Heathrow connectivity, give the government control over London-Heathrow slots, and provide a €100 million bank guarantee that it would reduce Aer Lingus' short haul fares by 5% and eliminate the airlines fuel surcharge.
However, rebutting the new offer, a spokesman for Ryanair said: "Following a thorough review, the European Commission prohibited Ryanair's takeover of Aer Lingus on 27th June 2007.
"Ryanair is now appealing the European Commission prohibition. Consequently, this new lower offer is not capable of completion.
"Aer Lingus remains a strong business with significant cash reserves and a robust long term future. The Board believes that the Offer significantly undervalues Aer Lingus."
(DW)
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The budget airline Ryanair has revealed financial returns showing a major nosedive in operating profits. Ryanair plunged into the red by €169.2 million (£145.9m) in the year to March after being hit with a 59% hike in its fuel bill.
19 October 2007
Ryanair Hits Out As Aer Lingus Takes Flight
With Aer Lingus proceeding with its plan to close the Shannon-Heathrow route and open a new Belfast hub instead, its biggest rival (and ironically, its biggest shareholder), Ryanair is now set to provide three additional daily flights to London to ensure Shannon Airport's capacity and traffic does not fall as a result of this Aer Lingus closure.
Ryanair Hits Out As Aer Lingus Takes Flight
With Aer Lingus proceeding with its plan to close the Shannon-Heathrow route and open a new Belfast hub instead, its biggest rival (and ironically, its biggest shareholder), Ryanair is now set to provide three additional daily flights to London to ensure Shannon Airport's capacity and traffic does not fall as a result of this Aer Lingus closure.
02 December 2008
Government Looks Seriously At Aer Lingus Offer
The Irish Finance Minister Brian Lenihan (pictured) is said to be having a "serious look" at a fresh multi-million euro offer for Aer Lingus from its rival Ryanair - even though the airline itself has publicly ruled the bid out. Ryanair boss, Michael O'Leary has been actively trying to take over Aer Lingus for sometime, offering €1.
Government Looks Seriously At Aer Lingus Offer
The Irish Finance Minister Brian Lenihan (pictured) is said to be having a "serious look" at a fresh multi-million euro offer for Aer Lingus from its rival Ryanair - even though the airline itself has publicly ruled the bid out. Ryanair boss, Michael O'Leary has been actively trying to take over Aer Lingus for sometime, offering €1.
18 July 2012
Aer Lingus Want Shareholders To Reject Ryanair Takeover Bid
Aer Lingus has called on its shareholders to reject the Ryanair takeover offer. Ryanair submitted a formal takeover for Aer Lingus yesterday with an offer of €694m. However, Aer Lingus has said it believes Ryanair’s offer "fundamentally undervalues Aer Lingus and represents a significant discount to the intrinsic value of the business".
Aer Lingus Want Shareholders To Reject Ryanair Takeover Bid
Aer Lingus has called on its shareholders to reject the Ryanair takeover offer. Ryanair submitted a formal takeover for Aer Lingus yesterday with an offer of €694m. However, Aer Lingus has said it believes Ryanair’s offer "fundamentally undervalues Aer Lingus and represents a significant discount to the intrinsic value of the business".
21 October 2009
Aer Lingus Should Merge – But Not With Ryanair
A former Aer Lingus chief executive has said the future of the airline can only be secured if it merges with another airline – as long as that airline isn't Ryanair.
Aer Lingus Should Merge – But Not With Ryanair
A former Aer Lingus chief executive has said the future of the airline can only be secured if it merges with another airline – as long as that airline isn't Ryanair.
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