O’Leary strikes again

O‘Leary, although predicting losses for the second half of the year makes a lower bid.

Ryanair, Europe’s largest low-cost airline, on Monday offered to buy Irish rival Aer Lingus for €750m ($970.4m), or just half the price of its bid in 2006 which was blocked by the European Union.

Why should it not be blocked again? Aer Lingus’s, first reaction is keenly awaited. The unions have no doubt.

The initiative was “doubtless” designed to coincide with a dispute in Aer Lingus. “However workers and management in Aer Lingus have managed to formulate a proposal to save the airline, frustrate Ryanair’s monopoly ambitions, continue to promote choice to in the Irish airline industry and maintain some semblance of civilised working conditions.”

I heard an analyst say this morning that EU and the Irish government wouldn’t tolerate an Irish airline monopoly. So what’s the difference between Ryanair/Aer Lingus and the merged Air France/KLM and Lufthansa/Swiss?

  • ulsterfan

    Aer Lingus should never have permitted Walsh to leave for British Airways where he is doing a great job.
    If they had him in charge the Advances of Ryanair would be repelled.
    It must remain intact and provide the people of Ireland with a choice.
    There is a place for Ryanair and it is not as a monopoly provider.

  • So what’s the difference between Ryanair/Aer Lingus and the merged Air France/KLM and Lufthansa/Swiss?

    Landing slots, AFAIK. The EU doesn’t like one airline having too great a share of the slots at a particular airport, like Dublin. Ryanair and Aer Lingus between them would control the lions share.

  • dodrade

    If they really don’t want O’Leary to get his hands on Aer Lingus but people stop flying could FF be forced to renationalise it?

  • The Devil

    It’s all baloney, Ryanair don’t want Aer Lingus and couldn’t raise the finance required anyway, which is why they tabled a silly half value bid knowing it would be rejected out of hand.
    However they do want the free advertisement which the news starved media and now Slugger are just falling over themselves to provide Ryanair with.

    It would be really funny if Aer Lingus accepted just for the craic to watch O’Leary crap himself and then when he had to pull out of the deal the Ryanair financial foundation would look very shakey indeed.

  • The Watchman

    Aer Lingus run a very good BFS-LHR service which has tempted me away from easyJet’s London routes.

    Hate the thought of the self-proclaimed “Little Bollocks” getting his hands on a good airline.

  • Danny

    So what’s the difference between Ryanair/Aer Lingus and the merged Air France/KLM and Lufthansa/Swiss?

    Realpolitik – the political establishments in France and NL wanted the merger of KLM and Air France because neither had a future on its own. The case with Aer Lingus and Ryanair is very different. Aerlingus has 1 billion euro in cash alone on its balance sheet. It is profitable and very competitive. Ironically it is because it has had to survive against cut-throat Ryanair in it’s own back yard that it is in the good shape it’s in today. No way the political establishment in Dublin or Brussels will wave this deal through. Would only happen if Aer Lingus was going to the wall and needed to be saved. Clearly not the case now. Only explanation that I can think of as to why O’Leary is having a go is because he’s bloody minded and doesn’t know when to give up. Plus he loves to annoy people!

  • cynic

    Does this mean that O’Leary was stupid for offering twice as much in 2006 or the current owners would be stupid for accepting half as much now?

    Never mind. Cost = €0 but Ryanair gets lots of free publicity knowing that the Irish Government and EU would never agree.

  • Greenflag

    ‘The EU doesn’t like one airline having too great a share of the slots at a particular airport, like Dublin.’

    Is that so ? Has anyone looked at the slots Alitalia has on the lucrative Rome -Milan route ?

    Aer Lingus will eventually be bought out . The only question is by who and when . Personnally I think the ‘little bollix ‘ has done such a great job bringing Ryan Air from nowhere to where it is that Aer Lingus could do worse -much worse.