Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Ryanair Makes Fresh Take Over Bid For Aer Lingus  
User currently offlineSmokeyrosco From Ireland, joined Dec 2005, 2112 posts, RR: 13
Posted (6 years 3 weeks 6 days 17 hours ago) and read 8790 times:

After a failed attempt when Aer Lingus originally floated Ryanair is today makeing a fresh bid to take over Aer Lingus at a bargin price!

Quote:
Ryanair has announced an offer of €1.40 per Aer Lingus share. This values the airline at €748million.

It already owns 29.82% of the airline.

It says it wants to merge the two airlines into one strong Irish airline group under common ownership.

http://www.rte.ie/news/2008/1201/aerlingus.html


John Hancock
64 replies: All unread, showing first 25:
 
User currently offlineSmokeyrosco From Ireland, joined Dec 2005, 2112 posts, RR: 13
Reply 1, posted (6 years 3 weeks 6 days 16 hours ago) and read 8773 times:

Interestingly enough €1.40 is exactly half of what FR offered for EI in 2006.

Some more info.

Quote:
In a surprise move announced to the Irish Stock Exchange this morning, Ryanair says it is offering €1. 40 per Aer Lingus share, which values the airline at €748m. Ryanair already owns 29.82% of the former state carrier.

An earlier takeover bid by Ryanair for the airline was blocked by the European Union.

It says it wants to merge the two airlines into one strong Irish airline group under common ownership similar to recent mergers in Europe such as Air France/KLM and Lufthansa/Swiss .

AdvertisementIt says that both airlines will operate as separate companies with separate brands.

Ryanair says that it the offer is successful it will double the size of the Aer Lingus short haul fleet from 33 to 66 planes over the next five years. It also promises 1,000 new jobs.

It also says that the Aer Lingus Chairman will be invited to join the board of Ryanair.




John Hancock
User currently offlineBennett123 From United Kingdom, joined Aug 2004, 7817 posts, RR: 3
Reply 2, posted (6 years 3 weeks 6 days 16 hours ago) and read 8711 times:

http://news.bbc.co.uk/2/hi/business/7757971.stm

Given that the staff have a stake in this, they (especially those working in short/medium haul) may feel that this would be a case of Turkey's voting for Christmas jobswise.


User currently offlineAIR MALTA From Malta, joined Sep 2001, 2531 posts, RR: 1
Reply 3, posted (6 years 3 weeks 6 days 15 hours ago) and read 8625 times:

I hope this does not go through...The last thing we won't se is Ryanair dominating the Irish Skies.


Next flights : BRU-ZRH-CAI (LX)/ BRU-FCO-TLV (AZ)
User currently offlineSmokeyrosco From Ireland, joined Dec 2005, 2112 posts, RR: 13
Reply 4, posted (6 years 3 weeks 6 days 15 hours ago) and read 8601 times:

Well EI are already looking to outsource 1500 jobs.... the Staff and the Irish Government own about 40% of the airline still and will no doubt reject the proposal, but FR already own close to 30% and they only need 50.1% or there abouts to take over the airline and have it run they way they want it. I don't really see it going through it's just interesting that FR would 'waste' money in a fresh takeover bid though.

I don't know if tihs is an ego thing for MOL or if they think it maybe one of the better investments in Europe airline wise??

EI shares are up 15% at €1.29



John Hancock
User currently offlineJWMD123 From Ireland, joined May 2006, 867 posts, RR: 0
Reply 5, posted (6 years 3 weeks 6 days 15 hours ago) and read 8552 times:

Don't think this is gonna happen.

FR are still awaiting a response from the court of first instance on the original rejection by the EU.

Now doubt EI management will come out and say it seriously undervalues them.

Two main reasons I believe FR want there hands on EI are:

LHR slots so they can do what they like with them
The €750mln or so of cash that EI have sitting in the Bank.

Seriously it is so ironic that FR whom were given a route from EI back in the 80's to create competition now want to get rid of the thing (competition) that has made them such a powerhouse today.

MO'L is just on a power trip and is like a child when you tell him no he will do the exact opposite.


User currently offlineBA319-131 From United Kingdom, joined Jan 2001, 8596 posts, RR: 54
Reply 6, posted (6 years 3 weeks 6 days 14 hours ago) and read 8537 times:
Support Airliners.net - become a First Class Member!



Quoting AIR MALTA (Reply 3):
I hope this does not go through...The last thing we won't se is Ryanair dominating the Irish Skies.

- Totally agree, fingers crossed it never happens.



111,732,3,4,5,7,8,BBJ,741,742,743,744,752,762,763,764,772,77L,773,77W,L15,D10,30,40,AB3,AB6,A312.313,319,320,321,332,333
User currently offlineHumberside From United Kingdom, joined Dec 2005, 4927 posts, RR: 4
Reply 7, posted (6 years 3 weeks 6 days 14 hours ago) and read 8518 times:



Quoting JWMD123 (Reply 5):
LHR slots so they can do what they like with them

If you read the FR press release/presentation they say they will retain LHR-ORK/DUB - though no such commirment to BFS-LHR. Of course things can change and FR can hardly say they will sell them at the moment, but yiu never know, they may be true to their word and retain them



Visit the Air Humberside Website and Forum
User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19260 posts, RR: 52
Reply 8, posted (6 years 3 weeks 6 days 14 hours ago) and read 8491 times:



Quoting AIR MALTA (Reply 3):
The last thing we won't se is Ryanair dominating the Irish Skies.

Let’s hope LH doesn’t acquire or gain big stakes in everyone left, right and centre. Oh wait…

I don’t particularly see the point of FR doing this, and I consider it taking its eyes off the ball and wasting its money.



"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
User currently offlineSketty222 From United Kingdom, joined Mar 2006, 1778 posts, RR: 3
Reply 9, posted (6 years 3 weeks 6 days 14 hours ago) and read 8464 times:

Is this what MOL was taking about when he said that FR would be flying TABig grin


There's flying and then there's flying
User currently offlineAIR MALTA From Malta, joined Sep 2001, 2531 posts, RR: 1
Reply 10, posted (6 years 3 weeks 6 days 14 hours ago) and read 8445 times:



Quoting Pe@rson (Reply 8):
Let’s hope LH doesn’t acquire or gain big stakes in everyone left, right and centre. Oh wait…

For the first time, we agree on this point Pe@rson  Wink

Quoting Humberside (Reply 7):
If you read the FR press release/presentation they say they will retain LHR-ORK/DUB - though no such commirment to BFS-LHR.

Oh that would be a horror scenario! How would Irish PAX transfer at LHR when Ryanair can not provide interline agreements with other airlines?!



Next flights : BRU-ZRH-CAI (LX)/ BRU-FCO-TLV (AZ)
User currently offlineOA260 From Ireland, joined Nov 2006, 27342 posts, RR: 60
Reply 11, posted (6 years 3 weeks 6 days 14 hours ago) and read 8434 times:

Wont happen. MOL has been quiet lately so some free advertising for him.

User currently offlineJWMD123 From Ireland, joined May 2006, 867 posts, RR: 0
Reply 12, posted (6 years 3 weeks 6 days 14 hours ago) and read 8362 times:



Quoting Pe@rson (Reply 8):
I don’t particularly see the point of FR doing this, and I consider it taking its eyes off the ball and wasting its money.

Pe@rson, anymore comments like this and I will be adding you to my respected list!!!!!!!

Serioulsy, I agree, I think this is a personal thing for MO'L.

FR have bigger fish to fry than EI.


User currently offlineGosimeon From Ireland, joined Jan 2008, 663 posts, RR: 0
Reply 13, posted (6 years 3 weeks 6 days 12 hours ago) and read 8244 times:

This makes plenty of sense. It gives Ryanair some long-haul A/C to play with, as well Heathrow slots which I do think it would use well. They could target a different market with the Aer Lingus brand too. I hope it's let go ahead and the Government do not interfere. Aer Lingus won't make money as a stand-alone under the current management for the foreseeable future anyway. Consolidation is the way forward.

User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 24
Reply 14, posted (6 years 3 weeks 6 days 12 hours ago) and read 8218 times:

Let's be realistic -without a major ,financially strong shareholder,Air Lingus will be history in two years.Not that I particularly like Ryainar,but they have a project and the money to run it.
I'd rather be bought by FR than resist vainly and run into receivership in 24 months.



Please respect animals - don't eat them...
User currently offlineEI564 From Ireland, joined May 2007, 373 posts, RR: 0
Reply 15, posted (6 years 3 weeks 6 days 12 hours ago) and read 8197 times:



Quoting Pe@rson (Reply 8):
Let’s hope LH doesn’t acquire or gain big stakes in everyone left, right and centre.

The problem with FR + EI combining remains the huge market share they will gain in Ireland. LH taking over Brussels airline makes little difference to the competitive market share in Belgium (as far as I am aware anyhow).


User currently offlineSmokeyrosco From Ireland, joined Dec 2005, 2112 posts, RR: 13
Reply 16, posted (6 years 3 weeks 6 days 12 hours ago) and read 8119 times:



Quoting Gosimeon (Reply 13):

I kinda agree, if MOL does what he says he is going to do with EI then I think it could only be a good thing for EI as a company. But realisticly it's a gamble what FR would do if they got control of EI.

On the other hand I do not want to think that FR (or any airline for that matter) control something as high as 80% of european traffic on and off this island. That just cannot be good fullstop.



John Hancock
User currently offlineAl2637 From Ireland, joined Oct 2006, 408 posts, RR: 3
Reply 17, posted (6 years 3 weeks 6 days 11 hours ago) and read 8004 times:

What if the takeover was to be given the go ahead, but with the stipulation that the combined entity could only account for 60% of traffic in and out of Dublin? Might give RE or others an opportunity to expand!

User currently offlineJWMD123 From Ireland, joined May 2006, 867 posts, RR: 0
Reply 18, posted (6 years 3 weeks 6 days 10 hours ago) and read 7932 times:



Quoting Al2637 (Reply 17):
What if the takeover was to be given the go ahead, but with the stipulation that the combined entity could only account for 60% of traffic in and out of Dublin? Might give RE or others an opportunity to expand!

In the current climate who in all honesty would take on FR on their home turf. No one.

FR has ran a lot of airlines out of Ireland and there intention to by EI is to make sure that Ryanair Holdings is the major aviation player.

If FR did get EI then I think it would be a matter of months before RE would fold. FR will drive them off any routes they can.

Quoting Beaucaire (Reply 14):
Let's be realistic -without a major ,financially strong shareholder,Air Lingus will be history in two years.Not that I particularly like Ryainar,but they have a project and the money to run it.
I'd rather be bought by FR than resist vainly and run into receivership in 24 months.

I think you will find that EI is 75 years old next year and has seen the ups and downs in the economy.

They have large cash reserves which any other airline would give there right arm for.

Also the Irish Government has a 25% stake. I don't think they would let it fall into receivership.

Quoting Gosimeon (Reply 13):
This makes plenty of sense. It gives Ryanair some long-haul A/C to play with, as well Heathrow slots which I do think it would use well. They could target a different market with the Aer Lingus brand too. I hope it's let go ahead and the Government do not interfere. Aer Lingus won't make money as a stand-alone under the current management for the foreseeable future anyway. Consolidation is the way forward.

Last year they made a profit under this managment so your point in invaild. These are challenging times, even FR will admit that, MO'L has constantly said he would be happy if FR breakeven this year. I accept that consolidation has to happen but look at what has happened I think the only real one to note in terms of internal is AZ and Blue 1. All others have been intra-country. This is two Irish airlines looking to become one and control 80% of the flights.

Cost cutting programmes are looking to deliver savings that will ultimately map the way to a profitable future for EI.

FR say they would run as two independent companies and maybe they will but ultimately any decisions will be dictated by the ultimate owner, Ryanair Holdings.

Ireland is an Island nation and aviation is very important to our connectivity to the world. Mainland europe is different in that roads and rail make moving around eaiser. Even the UK has the Channel Tunnel to give it connectivity to Europe. Ireland does not have this.

Compeition is important in the market and it is how we now have such great access to aviation (remember the days of IEP £300 to get to London and that was cheap!!).

FR taking over EI would be bad for the consumer in terms of choice, bad as an image for Ireland to attract other airlines and would go against the EU's stance of providing competition in the market.


User currently offlineVV701 From United Kingdom, joined Aug 2005, 7743 posts, RR: 17
Reply 19, posted (6 years 3 weeks 6 days 10 hours ago) and read 7845 times:



Quoting Smokeyrosco (Thread starter):
Ryanair has announced an offer of €1.40 per Aer Lingus share. This values the airline at €748million.



Quoting JWMD123 (Reply 5):
Two main reasons I believe FR want there hands on EI are:

LHR slots so they can do what they like with them
The €750mln or so of cash that EI have sitting in the Bank.

Seems a good deal to me. Pay out 70.1 per cent of €748million. In return get an airline, its LHR slots and approximately €750mln in cash. But what shareholder would agree to that? Wouldn't they all be better off if the airline went into liquidation, sold off its assets (including the LHR slots) and distributed its cash to the shareholders?


User currently offlineHumberside From United Kingdom, joined Dec 2005, 4927 posts, RR: 4
Reply 20, posted (6 years 3 weeks 6 days 9 hours ago) and read 7794 times:



Quoting AIR MALTA (Reply 10):
Oh that would be a horror scenario! How would Irish PAX transfer at LHR when Ryanair can not provide interline agreements with other airlines?!

Maybe EI would still do interline? Ryanair are already proposing to break with their strategy here by going into airports like LHR, so why not break it further and interline, codeshare and connect?

Quoting VV701 (Reply 19):
But what shareholder would agree to that? Wouldn't they all be better off if the airline went into liquidation, sold off its assets (including the LHR slots) and distributed its cash to the shareholders?

The institutional shareholders maybe, but the Irish government and EI employees wouldnt want to see EI liquidate



Visit the Air Humberside Website and Forum
User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19260 posts, RR: 52
Reply 21, posted (6 years 3 weeks 6 days 9 hours ago) and read 7744 times:



Quoting Humberside (Reply 20):
Ryanair are already proposing to break with their strategy here by going into airports like LHR,

LMAO. The day that happens we'll all be dead. Ryanair itself would not do that.

Likewise, it would not:

Quoting Humberside (Reply 20):
interline, codeshare and connect




"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 59
Reply 22, posted (6 years 3 weeks 6 days 9 hours ago) and read 7720 times:



Quoting VV701 (Reply 19):
Quoting Smokeyrosco (Thread starter):
Ryanair has announced an offer of €1.40 per Aer Lingus share. This values the airline at €748million.



Quoting JWMD123 (Reply 5):
Two main reasons I believe FR want there hands on EI are:

LHR slots so they can do what they like with them
The €750mln or so of cash that EI have sitting in the Bank.

Seems a good deal to me. Pay out 70.1 per cent of €748million. In return get an airline, its LHR slots and approximately €750mln in cash. But what shareholder would agree to that? Wouldn't they all be better off if the airline went into liquidation, sold off its assets (including the LHR slots) and distributed its cash to the shareholders?

FR would also assume EI's debts as well however... yes 



"Up the Irons!"
User currently offlineThrottleHold From South Africa, joined Jul 2006, 659 posts, RR: 1
Reply 23, posted (6 years 3 weeks 6 days 9 hours ago) and read 7683 times:

A lot of you are very naive if you believe a word that comes out of MO'L's mouth. A leopard doesn't change it's spots.

User currently offlineHumberside From United Kingdom, joined Dec 2005, 4927 posts, RR: 4
Reply 24, posted (6 years 3 weeks 6 days 9 hours ago) and read 7683 times:



Quoting Pe@rson (Reply 21):
Quoting Humberside (Reply 20):
Ryanair are already proposing to break with their strategy here by going into airports like LHR,

LMAO. The day that happens we'll all be dead. Ryanair itself would not do that.

Likewise, it would not:

Quoting Humberside (Reply 20):
interline, codeshare and connect

I could have been clearer but is pretty obvious what I meant - if a FR owned airline would go into LHR, then its certainly not impossible that a FR owned airline would connect, codeshare and interline



Visit the Air Humberside Website and Forum
25 ThrottleHold : Contrary to all their posturing and spouting, which some here seem so gullible to readily believe, all FR woud do is: *Sell off the LHR slots. *Sell t
26 Jacobin777 : ...i.e.-getting a good return and looking out for its shareholders... I'm not saying its the only way to do it nor the most ethical, but it is one wa
27 Gosimeon : No it's not. I know they made a profit last year, but they made heavy losses his year, and those losses are expected to be bigger next year yet small
28 Shamrock104 : What evidence do you have (apart from a crystal ball it would seem) that they would do any of that? Firstly, they would be ailianaiting most of their
29 ThrottleHold : It's coming from years of experience working inside the airline industry.
30 EI564 : Well honestly, can you say your views are supported by anything more than a crystal ball? It does indeed make sense from FR's POV to take over EI, as
31 Post contains links Oa260 : Aer Lingus rejects Ryanair takeover bid The Board of Aer Lingus has announced it has rejected a €748m offer by Ryanair to buy the airline. In a stat
32 Shamrock104 : Air Canada / Canadian comes to mind - a takeover, not a merger, which was allowed - but the EI/FR deal would also be a takeover, if allowed, which I
33 Humberside : Well they say they wouldn't. Clearly if they did that then FR would face a hell of a storm amongst unions and politcians in Ireland. Though if anyone
34 Shamrock350 : Dubai was a mess, no agreement with EK and terrible timings along with a poor product offering. Aer Lingus was the quickest to react when Open Skies
35 EI564 : I don't know enough about AC and Canadian to comment on that. I'm sure there must have been a valid reason though. Certainly Westjet have taken a big
36 Viscount724 : Canadian wouldn't have survived much longer on their own and the government was anxious to avoid the political impact of seeing thousands of CP jobs
37 Babybus : I wouldn't mind seeing EI being owned by FR. As long as EI can achieve some kinda service level and remain essentially Irish. By that I mean not opera
38 EI564 : That make sense. That's why the real threat to EI would be if FR ever start long haul flights. Will be hard to see EI survive then but I wouldn't rul
39 AirNZ : Just on a pure point of order only, aren't you forgetting UK pax as well? Although I have no strong feelings on it either way, I have to say I would
40 BOStonsox : To me, Ryanair and Aer Lingus are like apples and oranges. Sure, they're both LCCs, but their cultures and business models are so different, more so t
41 Shamrock104 : Exactly - this is the logic people just don't seem to 'want to accept' regarding FR-EI as a joint force. If Canada had this problem - look at the siz
42 Toulouse : A couple of easy European routes??!! I don't mean to be offensive, but where were you 10 years ago? This was the EI European network from Dublin in s
43 EI564 : Exactly. So no reason to get rid of the only competition we will ever have. Not when EI aren't doing that badly. They themselves don't want to be tak
44 JWMD123 : Just looking into this and I think this FR bid is a bit of a waste of time. They were re-buffed by the EU competition authority and FR have gone to th
45 Shamrock104 : If you had bothered to read my earlier post you would see that I was referring to post 9/11. And to be honest, these european routes were long overdu
46 Bramble : FR stock dropped today in reaction to the announcement. Aren't their shareholders already annoyed over the 2006 attempt? In reality FR will not stand
47 Post contains images Toulouse : Why shouldn't I, or others, praise EI. I am a frequent airline travel, and while I would not classify EI as having the best service levels in Europe,
48 Byrdluvs747 : So how has EI benefited from leaving OW? From what I can see, things have only deteriorated for them.
49 Shamrock350 : It hasn't affected them at all, in fact Aer Lingus saved millions by not upgrading their systems for the new airlines who were joining that they woul
50 EI564 : I don't agree with this. If EI was failing and there was no other offers for it, then i'd give FR a go. Otherwise, not a chance. Furthermore Canadian
51 Al2637 : Lots of good points made by various people above.. just to add my 2 cents to the argument: FR may increase the EI fleet to 66, there is no mention as
52 ClassicLover : That's crazy talk, and you know it... Not much - I forget the percentage of passengers that oneworld fed to Aer Lingus, but I believe the relationshi
53 EI564 : I've not much of an idea about how competition law works but is such a condition possible? Because it is basicly saying that proper competition can't
54 Iloveboeing : I think the FR plan to take over EI is a great idea! They can lower fares even more, which would be great for consumers. A low-fare carrier should be
55 Smokeyrosco : The figure was 3 million, I don't think it was just the system but also the implementation. As was said above, whats the point when you can keep your
56 Bennett123 : Some people keep banging on about "consumers", but what about "employees". Incidentally, they are both the same people.
57 Post contains links Kaitak : Well, the Minister for Transport, Noel Dempsey, met MOL last night in what was described as a listening exercise; a meeting has also been requested wi
58 Bramble : Always thought that. FR have outgrown Ireland..................biggest base is Stanstead.....they are a European Ailine at this stage....in fact they
59 Kaitak : Here's the full text of FR's statement; it is strengthening it's offer by emphasising a few points, including recognition of EI unions: Update on Cash
60 Bennett123 : Clearly with oil prices dropping and the reccession, there is downward pressure on fuel surcharges in particular and prices in general. That said this
61 EI564 : Its certainly a clever release. Taking the populist approach. The key is in the small print of course. Who loses a couple of LHR connections for examp
62 ClassicLover : Considering it's one morning and one evening flight, I imagine DUB-LHR-DUB would lose one flight, it's hardly going to ruin the schedule out of Dubli
63 COEI2007 : I think people need to realise, if FR get their hands on EI: a) they may allow competition into DUB and cut back on a few flights, but they wont let
64 EI564 : No. But as I said, if you are travelling from DUB to LHR, the morning and the evening flights are the most useful for business passengers. EI presuma
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Ryanair Drop Takeover Bid For Aer Lingus posted Wed Dec 20 2006 23:43:51 by Gilesdavies
Ryanair Launches Takeover Bid For Aer Lingus posted Thu Oct 5 2006 09:25:08 by Cxsjr
Ryanair's O'Leary To Bid For Aer Lingus posted Mon Jul 12 2004 13:23:57 by Widebody
Its All Over For Aer Lingus Too! ... posted Thu Nov 8 2001 12:52:35 by Ceilidh
Qantas Rejects Take Over Bid posted Wed Dec 13 2006 00:21:32 by Planemanofnz
More 'Buses For Aer Lingus posted Mon May 1 2006 13:28:33 by EI321
Whats The Next Step For Aer Lingus? posted Tue Aug 30 2005 00:31:53 by EI321
Virgin Blue In Another Take Over Bid, By Branson posted Thu Aug 25 2005 11:40:09 by 777ER
Three New US Routes For Aer Lingus? posted Thu Mar 18 2004 18:39:08 by Kaitak
New Colour Scheme For Aer Lingus posted Mon Mar 17 2003 10:25:05 by Unique
Three New US Routes For Aer Lingus? posted Thu Mar 18 2004 18:39:08 by Kaitak