Revamped Ryanair Offer Shot-Down

Aer Lingus has rejected the Ryanair offer despite a revised bid from the budget airline yesterday.

The rejection comes in spite of two major changes to the initial hostile takeover offer, with the Aer Lingus Chairman Colm Barrington dismissing the offer as "nothing new".

Originally, Ireland's mergers watchdog, the Takeover Panel, blocked two guarantees made as part of the Ryanair offer, arguing they could breach takeover rules by favouring one shareholder, namely the Irish Government which owns 25% of Aer Lingus.

Ryanair then changed the two clauses, saying they would no longer sell Aer Lingus' Heathrow Airport landing slots, and removing a €100 million guarantee originally to be paid to the Government if Ryanair defaulted on its promises to cut fares.

The Board of Aer Lingus has opposed the approach, saying the offer was "a stream of spin and misrepresentation".

In a sign of Aer Lingus' growing strength amid recent troubles, the airline announced yesterday it was to remove all fuel surcharges from its long haul flights.

Dermot Mannion, Aer Lingus Chief Executive, said, "This is very good news for Aer Lingus customers.

"We have been consistent in our approach to the fuel surcharge. Now that oil prices have fallen and stabilised over the past number of months, we believe the right thing to do is to remove these surcharges altogether."

Aer Lingus did not impose a fuel surcharge on its short haul services.


Related Northern Ireland Business News Stories
Click here for the latest headlines.

01 December 2008
Ryanair Flies Into Takeover Turbulence
There's a multi-million euro bid for Aer Lingus on the table today as budget airline Ryanair makes a fresh takeover offer. The all-cash offer would value Aer Lingus at €748m euros (£619m) a lot less than the previous offer for Aer Lingus, which valued it at €1.5 billion.
02 June 2009
Ryanair Flies Low
The budget airline Ryanair - which flies from two bases in Northern Ireland - 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.
31 August 2010
Examiner Appointed To Aer Arann
The High Court has appointed an Examiner for troubled airline, Aer Arann. Aer Arann said it intends to operate normally during the period of examinership and intends to fly all Aer Arann services and all Aer Lingus Regional services operated under the airline’s franchise agreement with Aer Lingus.
10 December 2019
Start-up Retail Space On Offer In Co Antrim
An opportunity has arisen for up to four retail start-ups to locate to Ballymena, Co Antrim. The business premises have been made available via the Ballymena Business Centre and The Gallaher Trust, a unique opportunity for new firms to avail of low rent retail space.
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.