Cabinet to discuss Ryanair's new Aer Lingus bid

MINISTER FOR Transport Leo Varadkar last night said he would discuss Ryanair’s latest offer for Aer Lingus with his Government colleagues before making any comment.

Ryanair has offered €1.30 per share for the 70 per cent of Aer Lingus it does not already own. The offer is almost 50 per cent higher than the average price of Aer Lingus shares in the last six months, and well ahead of the €1 per share price that Mr Varadkar previously indicated would be the minimum price acceptable to the Government.

The Government plans to sell its stake in Aer Lingus by next year to meet commitments given to the troika on the sale of State assets, said Ryanair. The airline’s bid has been timed to allow regulatory hurdles to be dealt with by that point, it said.

The European Commission blocked Ryanair’s previous bid for Aer Lingus on competition grounds, but the airline has argued that circumstances have changed since 2006, with the European airline industry consolidating around five players. “I have only just become aware of this development. I will have to study it and discuss it further with my Cabinet colleagues before making any further comment,” Mr Varadkar said.

Fianna Fáil’s transport spokesman Timmy Dooley called on the Government to use its shareholding in Aer Lingus to prevent Ryanair from taking control of the airline.

“The existence of Ryanair and Aer Lingus as separate, competing entities has transformed our tourism and business connectivity. Any material change to the separate status of these airlines would inevitably lead to reduced competition, increased fares and less choice,” he said.