Ryanair must clarify intentions on Aer Lingus before Ireland will make decision
The Irish government will not make a decision on selling its 25.1% Aer Lingus stake until it knows Ryanair’s intentions regarding the rival Irish airline, the Irish Independent reported. Senior sources within the government confirmed that Ryanair will have to reveal its hand before the Irish cabinet takes a decision on the matter, the report said.
The Anglo-Spanish listed airline operator IAG offered to acquire Aer Lingus six months ago, the report noted.
The Tanaiste (deputy prime minister) Joan Burton was quoted as stating that the way Ryanair decides to approach the 29.8% Aer Lingus stake it owns will play a “very significant” part in the government’s decision regarding its own stake.
Ryanair has appealed an order from UK regulators to cut its Aer Lingus stake to 5% and earlier this year indicated it might consider making its own offer for the rival airline, the report said. It is not known whether Ryanair would turn down or accept a formal bid from IAG for its stake, and the company has said only that any offer would be considered on its own merits, the item added.
Paschal Donohoe, the transport minister, said yesterday (17 May) that he had not yet been given a final report by the steering group set up to consider the Aer Lingus/IAG situation, the item reported. This means the deal will not be discussed by the cabinet this week, the report said.
The original article appeared in print; page 7.
Source Irish Independent