IAG takeover of Aer Lingus criticised by Virgin Atlantic for adverse effect on Irish consumers
Virgin Atlantic said it has contacted the European Commission with concerns about rival airline IAG’s proposed takeover of the Irish national carrier Aer Lingus, The Irish Independent reported. The report quoted from a letter in which Virgin Atlantic warned competition could be jeopardised and Irish consumers would suffer from less choice of airline, higher prices, impaired connectivity and worse service. The letter was addressed to Timmy Dooley, Transport Spokesperson for the Fianna Fail governing party of Ireland, the report said.
Virgin Atlantic does not fly out of Ireland but stated that it serves many of the people who connect to the UK with Aer Lingus and go on to travel further with another airline via Heathrow, Gatwick and Manchester airports.
The Irish government is currently considering whether to sell its 25% interest in Aer Lingus to IAG, the report noted. A second Irish Independent article quoted Paschal Donohoe, the Irish Transport Minister, stating that the most recent talks with IAG have been “very positive”, although he declined to say when the government is likely to make a decision on the matter beyond suggesting it would be a matter of weeks.
An Irish Times report said following a meeting yesterday, IAG and government officials are making progress towards an agreement which could result in a sale. The two sides are likely to hold another meeting soon, according to Donohoe; the report said this is expected to happen later next week.
Irish Independent, Irish Times