Irish Prime Minister Enda Kenny has warned that the government will not be “shoved into a fire sale” of its 25 percent share of Aer Lingus, after Ryanair boss Michael O’Leary made a bid to buy Ireland’s national airline.
“If and when that decision is made, it will be in the best interests of the people and the country in respect of all of those issues,” Kenny said.
“While the director of Ryanair is a person who has made very important moves in the past, in the sense of bringing real competition and access to and from this country for hundreds of millions of passengers, the fact is that the Government has a 25 per cent stake in Aer Lingus and there are other players in the field.”
“It is, however, a minority share the Government has and we do not have any veto over this,” he added. “We have no blocking rights.”
According to the Irish Times, Kenny said the government had not collectively considered the bid.
In 2007, the European Commission concluded that a takeover by the low budget airline would be harmful to competition and would create a problem in the 35 routes operated by both airlines.
Independent TD Shane Ross called on the Prime Minister to definitively say he would not allow a monopoly in airlines in Ireland.
Aer Lingus has released a statement claiming that Ryanair has undervalued the company in their bid to take over the airline.
Ryanair had offered €1.30 per share, slightly less than the €1.40 per share offered in a 2008 takeover bid.
The statement advised shareholders to take no action regarding the offer, RTE reports.
It said: "Aer Lingus has a proven business model and a strong balance sheet including cash of in excess of €1 billion at 31 March 2012, leaving it well positioned for the future."
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Switch to the desktop site to post a comment.Searlit | Jun 27, 2012, 07:53 PM EDT
BTB, you didn't read my post correctly. I didn't say they stopped any food from coming into Ireland, only that they allowed more food shipped out than was coming in. Ireland's food should have been given to the starving Irish, period!
Bythebay | Jun 27, 2012, 02:00 PM EDT
They've changed their tune about this one after the Turkish Airlines showed interest in Aer Lingus. ha, ha, that would be the end of alcohol on flights. Americans couldn't survive that!!
Bythebay | Jun 27, 2012, 01:58 PM EDT
Searlit, keep free market food out of Ireland during the Famine?? Food wasn't kept out of Ireland. 8 million people survived of the 9 million in Ireland at the time.
Searlit | Jun 22, 2012, 10:29 PM EDT
The problem is that it's very difficult to undue private ownership once it's taken place. Wasn't it the "free market" excuse that was used to keep shipping food out of Ireland during the "famine"? Wake up, already!
torbreezy | Jun 22, 2012, 08:20 PM EDT
Why is Ireland in the shape it's in today? Is it because of Michael O'Leary? Let the "free market" determine the outcome. And possibly, just possibly, Michael O'Leary can resuscitate the tourist industry of Ireland . . . and . . . concomitantly resuscitate the rest of the country.
irishpjk | Jun 22, 2012, 07:23 PM EDT
wtf Mr. Kenney if Aer Lingus won’t improve its service and win back many of the passengers it has lost the day will come when you will have nothing of value to sell. I don’t care who runs Aer Lingus but it needs someone to start running it soon. One time Aer Lingus had a commercial that showed passengers getting in their Aer Lingus seats, and it said something like don’t wait let the Irish hospitality begin here. Today that commercial would go more like this sit down, put your seat belt on and shut up or the hostilities will start here. Now I know many of you will say that is just me but I have to tell you I defended Irish Airlines and supported them for years, but one insult too many caused me change, and there are many more out there just like me.
Murph46 | Jun 22, 2012, 02:51 PM EDT
jimmybb -why are you the only one seeing this?I agree!
jimmybb | Jun 22, 2012, 02:00 PM EDT
maybe we should let o'leary run the country at least he hasa pair
JBRAFTREE | Jun 22, 2012, 01:17 PM EDT
Taoiseach is correct. Don't jump into a bad marriage between the Airlines and the Republic. Euros are hard to come by and O'Leary's nuts.
Searlit | Jun 22, 2012, 11:21 AM EDT
Well, we might as well swim over, if Ryan air takes over. He thinks he's a player, but acts like a Joker.