Middle East airline Etihad has acquired a minority stake in Aer Lingus and may look to expand its interest in the Irish state carrier.
The Abu Dhabi based company now owns 2.987 per cent of Aer Lingus according to a report in the Irish Times.
Aer Lingus has also confirmed that it is in discussions with Etihad in relation to reciprocal code-sharing arrangements.
The report states that the two airlines are also ‘investigating’ the possibility of joint procurement opportunities.
An Aer Lingus statement said: “Etihad had given an undertaking it does not intend to increase its shareholding pending the outcome of these discussions.
“There is no certainty as to the outcome of these discussions.”
There is now speculation that Etihad will bid for the Irish government’s 25 per cent stake in Aer Lingus when it becomes available in the coming months.
The two companies are also believed to be discussing joint marketing arrangements and a possible return by Aer Lingus to Middle East routes.
Etihad also has stakes in Air Berlin and Air Seychelles and has held talks with Air France KLM about a partnership.
Aer Lingus slots at London’s Heathrow Airport are believed to be of interest to Etihad.
The airline began flying from Dublin to Abu Dhabi in 2007 and operates 10 times a week between the cities.
Aer Lingus’s biggest shareholders are Ryanair, with 29.8 per cent; the Government, with a quarter share; and Denis O’Brien, who owns 3 per cent.
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Switch to the desktop site to post a comment.Searlit | May 02, 2012, 01:37 PM EDT
I would like to see the Irish government keep the shareholdership in Irish hands, too. There continues to be an awful lot going on that doesn't seem in the best interests of the citizenry of Ireland or the Irish Diaspora, for that matter. America has created a huge disaster, by putting everything up for grabs for foreign nations, since Reagan opened up the floodgates by allowing, Japan, Germany, etc. etc. to own America's industries and real estate. It was all done with the promise of creating jobs. This is the biggest lie going. The truth is the government (taxpayers) subsidize everything and not many jobs are created. Employees end up having their state taxes deducted and sent to these foreign nationals. Don't be fooled Irish people. You don't need to be harnessed like us Yanks.
IrelandNorth | May 02, 2012, 07:09 AM EDT
Checkmating Ryanair was to boost competition and prevent outright monopoly privatisation - i.e. shareholder democracy! Etihad is the state airline of the United Arab Emirates (UAE) - not the Kingdom of Saudi Arabia! We only have to deal with an Emir not a King, which should be easier I imagine? (Should residents of a smaller state of a certain island nation be commenting on the larger state of that country, particularly if she considers them to be mutually exclusive?) Keep Aer Lingus - the national flag carrying airline in majority Irish shareholdership, including Ulster/Northern Irish. Better still, discriminate in favour of Irish-American shareholders. Give them a fair-sheik too! NB Pres. Higgins!
Bythebay | May 01, 2012, 02:37 PM EDT
Who do you Americans think owns the American ports? Duh!
SeanO | May 01, 2012, 02:04 PM EDT
Skibereen, The Saudi's are very close friends of the Bushes, after 9/11 President Bush authorised special flights out of the USA for Saudi Nationals fearing a backlash. Money has friends everwhere, like Celtic Tiger Politicans.
Bythebay | May 01, 2012, 12:16 PM EDT
Skibberrean, first of all you don't live in Ireland and apparently don't have a clue about Aer Lingus or Ireland.
Skibberrean | May 01, 2012, 12:08 PM EDT
This is a disgrace and should NOT be allowed to happen! Ireland will be very sorry to get involved with anything Saudi involved in the airlines. the Saudi's are friends of no one.
torbreezy | May 01, 2012, 10:08 AM EDT
Why did Aer Lingus eschew the offer by Michael O'Leary of Ryanair to take a stake and/or take over the airline?