![]() ![]() The commission ruled in June last year that a merger between Aer Lingus and Ryanair would have a damaging effect on competition. We will not be devoting a lot of time to managing it." "Ryanair management would retain Aer Lingus management but they would work under our direction. If an airline like Iberia with 32 million passengers and a big monopoly to South America cannot survive on its own, then Aer Lingus cannot survive," he said, referring to Iberia's merger talks with British Airways.Ĭawley added that lodging a new takeover bid was not a distraction for Ryanair management, who are attempting to keep an aggressive expansion programme on track while steering the airline through an economic downturn. Michael Cawley, Ryanair deputy chief executive, told that Aer Lingus should accept that the aviation industry has changed "immeasurably" since 2006. It was opposed by the company and hugely rejected by its shareholders, even before the commission formally blocked the move. Ryanair made its first takeover bid in October 2006, shortly after Aer Lingus was floated on the stockmarket. Last month it announced sweeping job cuts in an effort to cut its bills by €74m. ![]() Like all airlines, Aer Lingus has been badly hit by the surge in the price of oil earlier this year, and the deteriorating economic climate. It is offering to pay €1.40 a share for the outstanding shares, a 25% premium on Aer Lingus's closing share price last Friday. Ryanair already owns almost 30% of Aer Lingus, following its earlier failed takeover attempt. In response, Aer Lingus noted Ryanair's move and urged shareholders to take no action before it issues a formal statement "in due course". "We know how to deliver profitability and growth, while Aer Lingus has demonstrated that it cannot." Its shares have fallen from over €3, to less than €1 recently," said O'Leary. "Over the past two years, the management of Aer Lingus have failed its shareholders, customers and staff. ![]() Michael O'Leary, Ryanair's chief executive, claimed that the all-cash deal would give Aer Lingus a strong partner to secure its future and pledged to double the size of Aer Lingus's short-haul fleet within five years. ![]()
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