RyanAir once again preparing to bid for Aer Lingus

Hotel News - 04/01/2010

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RyanAir one of Britain’s fastest growing budget airlines is gearing itsef to once again bid for the struggling Irish carrier, Aer Lingus. The board of governors of Aer Lingus has already scheduled a board meeting on January 26th where everyone concerned including the airline’s shareholders and the government of Ireland which holds 25 percent of the carrier’s stock will be present to discuss the options.

RyanAir already owns 29 percent stake in Aer Lingus and had attempted to take over the airline about a year back in a hostile bid. RyanAir had offered to buy the carrier for a reported 701 million pounds which the Irish government claimed had seriously undermined the value of the carrier.

However, Aer Lingus has been struggling to keep afloat this fiscal year and has been plagued with labor and union problems. In the first half of the year, a loss of 72 million pounds was reported. RyanAir on the other hand reported a profit increase by almost 75 percent.

According to sources close to the Chief executive of Ryan Air, Micheal O’Leary, a third takeover attempt is seriously being discussed. The first takeover bid was blocked by the European Commission on the grounds that unbalanced competitive dynamics would emerge.

RyanAir is confident that the third takeover bid is going to be successful, so much so, that they have pulled out of talks with Boeing. RyanAir had been in talks with the airplane manufacturer to place a 200 aircraft order. However, now they are confident that sufficient number of aircrafts will be available through the acquisition of Aer Lingus.

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