Ryanair bids for Aer Lingus
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Irish low-cost carrier, Ryanair, has launched a EUR748 million (US$950 million) offer for Ireland’s flag carrier, Aer Lingus, in which it already has a near 30% stake, AFP reported.
“The board of Ryanair proposes to merge the two airlines into one strong Irish airline group under common ownership,” Ryanair was quoted saying.
It added; “Both airlines would operate as separate companies, with distinctive brands, thereby preserving the best features of both.”
Two years ago, Ryanair launched a bid worth EUR2.80 a share in a deal that was rejected by Aer Lingus, the Irish government and by European Union competition regulators, the report said. But Ryanair, which still holds 29.8% of Aer Lingus after its previous failed bid, said the time was right to come back with a new bid that would offer “better promotion prospects and improved job security” to Aer Lingus employees.
The carrier, Europe’s biggest discount airline, is seeking to buy its local rival as the industry’s biggest crisis in at least five years drives mergers and acquisitions, Bloomberg said. It said Lufthansa, British Airways and Alitalia are among the region’s carriers currently negotiating tie-ups.
Growth prospects for airlines in the region have dimmed amid a worsening global economic slump and following record oil prices earlier this year, Ryanair was quoted saying. IATA estimates airlines will report combined losses of US$5.2 billion this year amid slowing demand.
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