Irish Tourist Industry Confederation flies flag for Aer Lingus sale

As a number of politicians and a range of interest groups line up against a takeover of Aer Lingus by International Airlines Group, Willie Walsh appears to have an ally in the form of the Irish Tourist Industry Confederation.

ITIC believes the Irish tourism industry “stands to gain” from an IAG takeover.

“The bid, if successful, would for the first time provide Ireland with a global one-carrier network connected to all regions of the world, while securing the future of Aer Lingus as a national brand in stable ownership within the International Airlines Group,” it said.

It noted the volatility in the airline industry and the recent trend towards consolidation and alliances. It also claims that IAG is a more efficient and profitable carrier group than its European rivals Air France-KLM and Lufthansa. Mind you, that's a point-in-time exercise.

“Aer Lingus as a relatively small former State owned national flag carrier is unlikely to survive as a standalone carrier with a small home market base,” ITIC said. It then almost argued against itself by saying: “Aer Lingus is an attractive target as it is now among the more efficient and lowest cost base legacy carriers in Europe. The company enjoys relative labour stability, controls valuable Heathrow slots, is a reputable brand and has a fast growing and profitable transatlantic business, together with orders for new long haul aircraft.”

ITIC sees benefits as long as Aer Lingus can continue to operate as a separate business unit within IAG, maintaining its brand identity, personnel and fleet.

“The seamless connection into BA’s and Iberia’s global networks will not only open up new market opportunities but will offer greater capacity, frequency and options for visitors.”

Another potential benefit is direct network connections to Asia/Pacific, South America and Africa and “more transatlantic services”.

Interestingly, ITIC's executive committee includes Declan Kearney, Aer Lingus's head of communications; also Cormac O'Connell of Dublin Airport Authority and Nandi O'Sullivan of Shannon Airport – who number Aer Lingus and IAG as important customers.

Cantillon understands the confederation's views were those of the management committee and that none of this trio was consulted in advance of the release.