Dublin - Irish low-cost airline Ryanair announced a fresh
bid to take over 100 per cent of privatized Irish national carrier
Aer Lingus on Monday.
Ryanair said in a statement that it was offering 1.40 euros (1.78
dollars) per share in Aer Lingus, which would value the airline at
748 million euros.
It claimed the deal would would be worth 325 million euros in
cash to shareholders, employees and the Irish government, which owns
just over 25 per cent of the airline.
The offer 'will lead to one strong Irish airline group, lower
fares for customers, rapid fleet growth and 1,000 new jobs in Aer
Lingus,' the statement said.
'It is a sensible strategy for Ireland,' Ryanair chief executive
Michael O'Leary told US news channel CNBC.
'Ireland has changed,' he said. Just as the Irish government said
it would merge banks to weather the global financial crisis, 'we
feel we should put the two airlines together to make a strong
national champion,' O'Leary said.
He said only a merged airline would be able to compete with the
large European carriers like Germany's Lufthansa and French-Dutch
airline Air France-KLM.
O'Leary said Ryanair would double the size of Aer Lingus' short-
haul fleet from 33 to 66 aircraft over the next five years, which
would create the jobs.
Ryanair is a major shareholder in Aer Lingus with a 29.8-per-cent
stake in the company.
Aer Lingus reported a loss of 22.3 million euros for the first
six months of 2008, down from a profit of 2.6 million euros in the
same period of 2007, owing to the rise in the cost of fuel, the
company said.
The company is currently in dispute with its employees over a
cost-cutting plan.
Ryanair's previous offer from September 2006 to take over Aer
Lingus was rejected by the European Commission as uncompetitive. It
was also resisted by the Irish government, which had just floated
the airline at the time.
The 2006 offer is currently under appeal at the European Court of
First Instance.
USA
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