Aer Lingus chief's plea over Ryanair bid
Newly-privatised airline Aer Lingus today formally urged shareholders not to sell out to a rival operator.
In a robust defence, Ireland’s former flag carrier said a €1.4bn bid from Ryanair boss Michael O’Leary was derisory and significantly undervalued the company.
The board of directors said the offer was ill-conceived, contradictory and anti-competitive.
And taking a swipe at Mr O’Leary’s brand of airline, Aer Lingus chairman John Sharman said his carrier offered a superior service which passengers preferred.
“Over the past five years, Aer Lingus has been substantially transformed. Faced with a strong, well-capitalised and independent Aer Lingus, Ryanair, our principal short-haul competitor, has reacted in a hostile, anti-competitive manner designed to eliminate a rival at a derisory price,” Mr Sharman said.
In a direct attack on Ryanair’s often fraught relations with staff, he said Aer Lingus management had a unity of purpose with its workforce.
“Our product offering is differentiated from our peers. It is superior to Ryanair’s and passengers prefer to fly with Aer Lingus,” he said.
“We have excellent growth opportunities and we have the fleet, staff, capital resources and management to deliver for shareholders.”
Aer Lingus said it has almost halved its unit costs since 2001 and has a relentless focus on reducing cost.
In a circular being issued to shareholders, it confirmed it was aiming for return of 15% per annum on its fleet investment.
