cxsjr
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Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 4:25 pm

Just seen this on breakfast news; no other details right now, other than those on the link below:

http://news.bbc.co.uk/1/hi/business/5408780.stm

[Edited 2006-10-05 09:37:11]
The world is a book, those who do not travel read only one page ....
 
trekster
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 4:41 pm

OH NO

Does that mean if they get EI they will have long haul??? God no
Where does the time go???
 
ANother
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 4:41 pm

Interesting. Could be a bargain considering what they could sell EI's LHR slots for ... Also gives them significant additional slots at DUB.
 
pilot21
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 4:47 pm

Quoting ANother (Reply 2):
Could be a bargain considering what they could sell EI's LHR slots for ... Also gives them significant additional slots at DUB.

The Govt has retained around 27% of the shares to make sure the airline couldn't be bought just for the LHR slots, so disposing of them isn't an option at the moment.

The interesting bit in the Irish news is that MO'L is saying that he would keep the 2 airlines seperate!
Aircraft I've flown: A300/A310/A320/A321/A330/A340/B727/B732/B733/B734/B735/B738/B741/B742/B744/DC10/MD80/IL62/Bae146/AR
 
MRURUN
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 4:51 pm

Ha. I've said it before and i'l say it again, FR is afraid of EI, they are its only robust competition. This confirms it, and confirms that MoL has finally barked his last sane thought. Good luck with that Michael!!
 
jwmd123
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 4:55 pm

Not a chance FR would be able to buy the company.

With the Govt 27% share and the Employees holding about 14% he won't get full control.

I think it would be a bad day in Irish Avaition if FR were to get there hands on EI. FR have a model that works for them. No doubt, even keeping the airlines seperate, some of that would spill into the EI model.
EI have a good model now with a low cost base, espically on T/A routes. It would lessen competition (I know MOL said he would let them compete, but if one is losing money, you know he will pull the route, wethere it is FR or EI) and give less choice to a consumer.
Why EI guys, why has it not tried this with another airline like Easy, FlyBe of Jet2.
Is this just a big publicity stunt even though they have bought shares (maybe they do see it as a good investment)? Or is FR really running scared of EI in DUB. Is this why we have had a lorry load of new routes before the flotation?
 
Shamrock330
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 4:59 pm

Well oh my God! I never saw this coming, not in a million years. Just heard Michael O' Leary on the radio announcing it, thought it was a nightmare.

I hope, if they succed on taking over, they don't run them into an extreme low cost operation like Ryanair. Gotta be honest I ain't happy at the prospect.
 
pilot21
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 4:59 pm

FR wants to stop the best competition it has, but where we go from here will be interesting, especially as the Unions still have a strangle hold on EI, and after all the FR saga's in the past few yrs with workers trying to join unions, a lot of EI empolyees will be saying no.
(As pointed out above, employees own 14% and the Irish Govt has retained 27% of the shares.)
Aircraft I've flown: A300/A310/A320/A321/A330/A340/B727/B732/B733/B734/B735/B738/B741/B742/B744/DC10/MD80/IL62/Bae146/AR
 
richm
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 5:00 pm

If this went ahead, what would Ryanair do with Aer Lingus's Airbuses? What's the probability of seeing an A320 in a Ryanair livery?

[Edited 2006-10-05 10:01:45]
 
AlanUK
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 5:17 pm

Quoting RichM (Reply 8):
What's the probability of seeing an A320 in a Ryanair livery?

Noooooooooooooooooooooooooooooooooooooooooooo  yell 
 
PlaneHunter
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 5:24 pm

Quoting Pilot21 (Reply 3):
The interesting bit in the Irish news is that MO'L is saying that he would keep the 2 airlines seperate!

Who does actually believe anything he says, considering his long history of preaching nonsense?

Quoting Shamrock330 (Reply 6):
I hope, if they succed on taking over, they don't run them into an extreme low cost operation like Ryanair. Gotta be honest I ain't happy at the prospect.

FR = low cost. Though, I don't believe for a second the takeover could become reality. Just cheap PR, as usual.


PH
Nothing's worse than flying the same reg twice!
 
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mariner
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 5:35 pm

Quoting JWMD123 (Reply 5):
With the Govt 27% share and the Employees holding about 14% he won't get full control.

All he needs is 51%.

mariner
aeternum nauta
 
Provance
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 5:37 pm

EI, FR, BD, RE, UA, XL, US,
 
EI321
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 5:42 pm

Quoting RichM (Reply 8):
If this went ahead, what would Ryanair do with Aer Lingus's Airbuses? What's the probability of seeing an A320 in a Ryanair livery?

Aer Lingus will remain as it is.

MOL spoke on Dublin Radio an hour ago, and said that he intends to keep the Aer Lingus brand as it is, wants to keep Mannion as EI CEO, and intends to further reduce EI fares by 2.5% per year.

As of now, Ryanair have aquired at least 16% of Aer Lingus Shares, and have offered a share price of €2.80 for the remainder.

It has been suggested that the compitition authority may intervien if Ryanair magages to get 25% of shares.
 
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nighthawk
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 5:46 pm

So... when does the first ryanair flight land at LHR?? Big grin

I wonder if MOL will expand Aer Lingus by opening some European bases, and running the airline as a fairly cheap, with frills carrier? That would really scare the likes of BA / AF / LH ...
 
mccormk
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 5:50 pm

on Ryanairs website mentioned by provence it lists benefits:
upgrade Aer Lingus transatlantic fleet and imrove product and give EI access to ryanairs low cost deliveries and low cost financing.
 
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nighthawk
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 5:51 pm

From the press release:

There are benefits of combining these two Irish and European airlines into one group. To give
a flavour of what this offer - if successful - might mean to Aer Lingus, its stakeholders and the
people of Ireland and Europe, Ryanair intends to:-

� Reduce Aer Lingus� average short haul fare (�87.55 in 2005) by 2 �% a year for a
minimum period of four years;
� Reduce Aer Lingus� fuel surcharges as the price of oil falls from recent highs;
� Retain the Aer Lingus brand;
� Retain the Heathrow slots;
� Retain all profitable routes currently operated by Aer Lingus;
� Reduce Aer Lingus� costs through improved efficiencies and Ryanair�s superior
purchasing power;
� Give Aer Lingus access to the benefit of Ryanair�s lower cost aircraft deliveries and
lower cost financing facilities;
� Upgrade Aer Lingus� transatlantic fleet and improve its long haul product;
� Maintain Aer Lingus as a stand alone, separate company within one strong Irish airline
group under common ownership but run as separate competing airlines.
 
Danny
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 6:01 pm

Quoting Nighthawk (Reply 16):
¿½ Reduce Aer Lingus� average short haul fare (�87.55 in 2005) by 2 �% a year for a
minimum period of four years;
� Reduce Aer Lingus� fuel surcharges as the price of oil falls from recent highs;
� Retain the Aer Lingus brand;
� Retain the Heathrow slots;
� Retain all profitable routes currently operated by Aer Lingus;
� Reduce Aer Lingus� costs through improved efficiencies and Ryanair�s superior
purchasing power;
� Give Aer Lingus access to the benefit of Ryanair�s lower cost aircraft deliveries and
lower cost financing facilities;
� Upgrade Aer Lingus� transatlantic fleet and improve its long haul product;
� Maintain Aer Lingus as a stand alone, separate company within one strong Irish airline
group under common ownership but run as separate competing airlines.

Come on. MOL is not buying EI to help EI. I don't believe in anything that he says. It is said to persuade EI employees to sell their shares.

I hope that the deal will not happen.
 
EI321
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 6:05 pm

Quoting Nighthawk (Reply 14):
I wonder if MOL will expand Aer Lingus by opening some European bases, and running the airline as a fairly cheap, with frills carrier?

It already is a cheap some frills carrier......

Quoting RichM (Reply 8):
If this went ahead, what would Ryanair do with Aer Lingus's Airbuses? What's the probability of seeing an A320 in a Ryanair livery?

Its more likely that we could see a 738 in Aer Lingus livery......

But relax guys, this might be blocked by the compitition authoritys. This would be like throwing 90% of Irelands airline capacity into one company.
 
richardw
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 6:09 pm

Quoting EI321 (Reply 18):
But relax guys, this might be blocked by the competition authorities

Exactly and inevitable.
 
PlaneHunter
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 6:14 pm

MOL simply tries to eliminate one of the largest direct competitors - he can promise a lot but there would be always a way to get around that later. EI employees would dig their own grave by selling their shares.


PH
Nothing's worse than flying the same reg twice!
 
columba
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 6:18 pm

Quoting RichM (Reply 8):
What's the probability of seeing an A320 in a Ryanair livery?


Modified Airliner Photos:
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Maybe Ryanair will then become the first no frills airline for transatlantic flights DUB-JFK :

Modified Airliner Photos:
Click here for bigger photo!
Design © TH
Template © Theo H.

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MaartenV
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 6:36 pm

Call me naive, but I think MOL's plans make sense. EI could indeed get better financing deals and cheaper airplanes if it operated under the FR umbrella and there will also be other economies of scale advantages, which could make this combination work.
Its all about supply and demand...
 
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nighthawk
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 6:37 pm

Quoting Columba (Reply 21):
Maybe Ryanair will then become the first no frills airline for transatlantic flights DUB-JFK :

FlyGlobespan has already taken that honour, possibly Zoom before them... ?
 
Danny
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 6:39 pm

Quoting MaartenV (Reply 22):
Call me naive, but I think MOL's plans make sense.

Yes, his plan is very good... for FR. But not for EI and not for the passengers.
 
ThePRGuy
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 6:43 pm

Quoting JWMD123 (Reply 5):
With the Govt 27% share and the Employees holding about 14% he won't get full control.

Errr?
27 + 14 = 41
He could get 59% giving FR control....
Who cares, two low cost crummy carriers coming together to produce an ALLIANCE of cruddy airlines
Bring it on
Alex
Heathrow has been described as the only building site to have its own airport.
 
Danny
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 6:47 pm

Quoting ThePRGuy (Reply 25):
Who cares,

I guess at least everybody in Ireland cares as this would create monpoly here. What is worst we would be forced to fly FR with its junk quality.
 
Eddie757
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 6:49 pm

Don't you think that this could be some kind of revolution in the sector? A low cost is trying to purchase a big traditional airline. I think this could make us think a little bit about it and its consequences.

Nevertheless, concerning the competition authorities, Spanish newspaper El Mundo, says that competition authorities of the EU may not be against this move.

Finally, we can see this as a big business coming from one of the countries with best macroeconomic data and prospects for the coming years in the European Union.
 
PADSpot
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 6:50 pm

Quoting Mariner (Reply 11):
All he needs is 51%.

With 27% the Irish Government has got a blocking minority. MOL couldn't do anyhing strategic (Such as selling slots at LHR) without their acceptance.
 
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mariner
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 6:57 pm

Quoting PADSpot (Reply 28):
MOL couldn't do anyhing strategic (Such as selling slots at LHR) without their acceptance.

Why would he want to sell the LHR slots? He scarcely needs the money, and they are extremely valuable - as slots - to any airline.

Mariner
aeternum nauta
 
Toulouse
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 7:11 pm

Quoting ThePRGuy (Reply 25):
Errr?
27 + 14 = 41
He could get 59% giving FR control....
Who cares, two low cost crummy carriers coming together to produce an ALLIANCE of cruddy airlines
Bring it on

If that's the depth of what you can post, why both? Sorry, but MANY people care.

Quoting Danny (Reply 26):
I guess at least everybody in Ireland cares as this would create monpoly here. What is worst we would be forced to fly FR with its junk quality.

Exactly.

I would hate to see this happen... and where's my auld friend Pe@rson, I'm sure he'll be delighted brining this a step closer to his motto "Ryanair, Ireland's National Airline"!!

Personnally, I hope and doubt this will happen.
Long live Aer Lingus!
 
smokeyrosco
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 7:55 pm

Quoting Mariner (Reply 11):
All he needs is 51%.

Not true, being a shareholder even a majority shareholder does not automatically make you a director. And even at that all the government would have to do is buy up another 5 or 10% to make sure he can't get a majority shareholding
John Hancock
 
richardw
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 8:06 pm

Quoting Smokeyrosco (Reply 31):
Not true, being a shareholder even a majority shareholder does not automatically make you a director.

But 51% shareholders have a powerful vote at shareholder meetings.
 
kaitak
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 8:20 pm

Quoting Danny (Reply 17):
¿½ Upgrade Aer Lingus� transatlantic fleet and improve its long haul product;

It comes to something when FR points out that EI's long haul product needs improving!

Interesting also that they are pointing at greater purchasing power, particularly in relation to acft deliveries - very much points to Boeing.

Still don't think it will be allowed to happen, though. What I see happening is that the govt, pushed by the unions, will resist this, but MO'L will increase pressure - adding more acft and even long haul routes from DUB, basically turn the screws to the extent that the govt will say in 2-3 years time, "we should have done a deal in 2006".

Be in no doubt, FR can make life very difficult for EI if it chooses.
 
Danny
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 8:23 pm

Quoting Kaitak (Reply 33):
It comes to something when FR points out that EI's long haul product needs improving!

This was not my quote but MOL's. In his mouth "improvement" could mean more seats, lower baggage allowance or in seat advertisement.
 
Provance
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 8:23 pm

Quoting Kaitak (Reply 33):
improve its long haul product

improving a produbt to MO'L could mean making passengers pay for their long haul in-flight service
EI, FR, BD, RE, UA, XL, US,
 
vv701
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 8:24 pm

Quoting Pilot21 (Reply 3):
The Govt has retained around 27% of the shares to make sure the airline couldn't be bought just for the LHR slots, so disposing of them isn't an option at the moment.

The Irish Government has now said it will not sell its shares. So I guess it is down to the employees and other shareholders. So the two important questions are:

Will the EU competition Commissioner (Peter Mendelson) intervene?

How do the AL and FR rates of pay compare? (Obviously most staff will not sell out for a quick profit if it means a big pay cut.)

A final thought. If FR are successful and with AL still in One World (even if on their way out) how would WW amd MOL get on?
 
express1
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 8:26 pm

Quoting RichM (Reply 8):

Ah looking at that modified A330,i can't see it somehow,or even the whole Aer Lingus fleet painted up in RyanAir colours,this would be a shame if RyanAir take over Aer Lingus.

on the BBC buisness news this morning,the word Bullyish tatics by Ryanair,well why am i not surpirised at that. Someone should tell the boss of Ryanair that being a bully to get what you want,is not the best thing to do.

i hope this take over dont happen.

Aer Lingus, just say noooooooooooooooooooo.

dave
David.S cavanagh since 1961,if you can do better,then show me.
 
HKGKaiTak
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 8:54 pm

Interesting ... if FR could get EI's cost base down then they could have a good money spinner in their hands with trans-Atlantic services? Imagine a low cost airline cost base and full service carrier fares ... it's certainly what QF is trying to achieve with JQ, which co-incidentally includes this idea:

Quoting Provance (Reply 35):
improving a produbt to MO'L could mean making passengers pay for their long haul in-flight service

... still, JQ International hasn't started yet, would be interesting to see how the pax reacts to paying for longhaul in-flight service ...
4 Engines 4 LongHaul
 
Joost
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 9:00 pm

Quoting EI321 (Reply 18):
But relax guys, this might be blocked by the compitition authoritys. This would be like throwing 90% of Irelands airline capacity into one company.



Quoting VV701 (Reply 36):
Will the EU competition Commissioner (Peter Mendelson) intervene?

Nobody blocked Air France when they took over KLM; in the Netherlands, also over 90% of the airline capacity is in one company - and even a foreign one! Nobody blocked Lufthansa when they took over Swiss. Nobody blocked AF when they took over Air Inter. Why should they block FR taking over Aer Lingus?
 
ThePRGuy
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 9:19 pm

Quoting Danny (Reply 26):
I guess at least everybody in Ireland cares as this would create monpoly here. What is worst we would be forced to fly FR with its junk quality.

You already have junk quality with Aer Lingus!  Yeah sure
Heathrow has been described as the only building site to have its own airport.
 
jwmd123
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 9:21 pm

Quoting Joost (Reply 39):
Nobody blocked Air France when they took over KLM; in the Netherlands, also over 90% of the airline capacity is in one company - and even a foreign one! Nobody blocked Lufthansa when they took over Swiss. Nobody blocked AF when they took over Air Inter. Why should they block FR taking over Aer Lingus?

The big difference with your above examples are that they are companies in a country purchasing another company in another country.

FR is a Irish based company along with EI. If they were to buy they would have a dominant position in the irish aviation market. I don't think the Competition authority would allow that.
 
worldtraveler
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 9:52 pm

Quoting Joost (Reply 39):
Nobody blocked Air France when they took over KLM; in the Netherlands, also over 90% of the airline capacity is in one company - and even a foreign one! Nobody blocked Lufthansa when they took over Swiss. Nobody blocked AF when they took over Air Inter. Why should they block FR taking over Aer Lingus?

I agree w/ JWMD. I can't see that this is beneficial for Ireland or the EU.
 
FlyinHigh
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 10:11 pm

Quoting Kaitak (Reply 33):
What I see happening is that the govt, pushed by the unions, will resist this, but MO'L will increase pressure - adding more acft and even long haul routes from DUB, basically turn the screws to the extent that the govt will say in 2-3 years time, "we should have done a deal in 2006".

 thumbsup 

Quoting Kaitak (Reply 33):
Be in no doubt, FR can make life very difficult for EI if it chooses.

Absolutely. Something that EI should always remember!!
Flown on A300,320,321,330, B717,727,737,747,757,767,777, BAC 1-11, BAE 146, D228, HS-121, L1011, MD 80, S360
 
ANother
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 10:20 pm

Quoting Express1 (Reply 37):
Will the EU competition Commissioner (Peter Mendelson) intervene?

Nellie Kroes, actually. But good question. FR is likely to be EI's largest competitor, at least on routes within the EU - consolidation to this degree, is not something competition authorities usually like. Let's wait and see what Brussels does.
 
ias250
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RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 10:43 pm

Ryanair Makes Offer to Buy
Aer Lingus for $1.88 Billion

By ROD STONE and KEITH JOHNSON
October 5, 2006 6:42 a.m.

Budget airline Ryanair Holdings Thursday launched a surprise takeover bid for newly listed Aer Lingus Group, a move that signals the shifting balance of power in the airline industry.

Ryanair said it will make an offer of €2.80 a share, valuing Aer Lingus at €1.48 billion ($1.88 billion), after acquiring a 16% stake in the company. The offer is conditional on obtaining at least a majority of shares in Aer Lingus.

"This offer represents a unique opportunity to form one strong airline group for Ireland and for European consumers. We will expand, enhance and upgrade the Aer Lingus operations," said Ryanair Chief Executive Michael O'Leary in a statement.

The bid turns traditional airline takeovers on their head. Many traditional airlines have established or bought smaller low-cost airlines to tap into a market segment that is profitable but hard for legacy carriers -- burdened by high fixed costs -- to tackle on their own. Ryanair's offer seeks to do the opposite, by adding an established, long-haul airline to the world's most successful low-cost carrier.

The offer comes just days after Aer Lingus started trading in Dublin and London following a partial privatization by the Irish government, which retains less than a 30% stake. The initial public offering was priced conservatively at €2.20 ($2.80) a share with conditional trading starting on Sept. 27.

In a statement, the Irish Government said it plans to retain a stake in Aer Lingus and stressed it remains committed to competition in aviation markets. Speaking at a news conference in Dublin, Mr. O'Leary said he would be happy for the Irish government to remain a shareholder.

Meanwhile, Ryanair's Chief Financial Officer Howard Millar said Aer Lingus represents an attractive investment and the acquisition will be funded by his airline's extensive cash reserves -- it has over €2 billion in cash. Mr. Millar stressed that the two airlines directly compete on very few routes out of the 500 Ryanair operates. He said the plan is to operate Aer Lingus and Ryanair as two distinct companies with separate fleets, rather than combining them. "Ryanair is going to continue to be short-haul. We've made an investment [in a company] that operates in the long-haul business," he said.

Mr. O'Leary has long said he was interested in long-haul operations, but never wanted to use Ryanair's spartan operations for long flights. By acquiring Aer Lingus, and keeping it as a separate brand -- and enhancing the long-haul amenities on the Irish flag carrier -- Mr. O'Leary thinks he can turn the proposed Irish airline group into a full-service operator that can funnel trans-Atlantic traffic through hundreds of Ryanair's short-haul routes in Europe.

Ryanair stands a better chance of successfully pulling off the Aer Lingus takeover thanks to the work of former Aer Lingus Chief Executive Willie Walsh, now boss at British Airways. In the four years after Sept. 11, Mr. Walsh copied much of Ryanair's strategy to slash costs and staff and boost profits at the once-moribund state carrier. It became one of Europe's most profitable state airlines before Mr. Walsh left for BA last year.

Ryanair has aggressively eaten into Aer Lingus's market share out of Dublin and has driven through a major expansion of services out of the Irish capital. Following a huge fleet expansion, Ryanair is now Europe's largest budget airline by the number of passengers carried. A combined Ryanair and Aer Lingus group would carry 50 million passengers annually.

Mr. O'Leary's bet reflects one of the realities of the budget-air business. While Ryanair has been able to squeeze tremendous value out of its operations by relentlessly finding new places to cut, its ability to keep up the pace of cost reduction is waning. Meanwhile, though it pledges to maintain Aer Lingus as a full-service carrier, it is likely to be able to apply some of its cost-cutting regimen to the airline in order to widen margins.

Spokespeople for Aer Lingus weren't immediately available for comment.

John Strickland, director of aviation consultancy JLS Consulting Ltd., said a takeover would give Ryanair a very strong position over the Dublin and Irish aviation market. He added that Ryanair has taken Aer Lingus head-on in Dublin in recent years and the budget carrier may look to scale down Aer Lingus's short-haul operation. "I would have thought there would be regulatory objections from the Irish government," Mr. Strickland said.

In Dublin, shares in Aer Lingus rose sharply on the planned bid, advancing 11.5% in morning trading. Ryanair shares were down 3%.
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 10:54 pm

OK where is Pe@rson? James what is your take on this.
You can cut the irony with a knife
 
MichiganMAN
Posts: 137
Joined: Wed Sep 21, 2005 1:47 am

RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 11:46 pm

If the Irish people do not want this deal.

stop flying FR and start flying EI.
UK -> USA
 
ebbuk
Posts: 844
Joined: Thu May 11, 2006 6:47 am

RE: Ryanair Launches Takeover Bid For Aer Lingus

Thu Oct 05, 2006 11:54 pm

If this goes through then goodbye EI Airbus fleet.

Gosh a low cost carrier swallowing up a national carrier? Could they cope?
 
NYC777
Posts: 5065
Joined: Wed Jun 09, 2004 3:00 am

RE: Ryanair Launches Takeover Bid For Aer Lingus

Fri Oct 06, 2006 12:02 am

Ok BREAKING NEWS:

Aer Lingus Rejects Ryanair's Offer and advises shareholders to take no action.

Just off Bloomberg.
That which does not kill me makes me stronger.

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