Government called on to protect Aer Lingus By Patrick Logue Last updated: 05-10-06, 10:53
Reaction: The Government must immediately state how it intends to protect Aer Lingus from a "predatory takeover", Labour said this morning.
The party's spokeswoman on transport Roisin Shortall also said Minister for Transport Martin Cullen and Aer Lingus management must also state if they were aware of moves by Ryanair to takeove Aer Lingus.
"The public will have been shocked by the disclosure this morning," Ms Shortall said.
"This is a potentially disastrous development for the Irish travelling public and is exactly the sort of situation the Labour Party warned could arise from the government's ill-judged and unnecessary decision to privatise the national airline," she added.
In a short statement this morning the Government said: "The Minister for Finance, Brian Cowen, TD, and the Minister for Transport, Martin Cullen, TD, have stated that the Government remains fully and firmly committed to competition in aviation markets. It will not sell its shares in Aer Lingus".
Siptu General President Jack O'Connor said a Ryanair takeover of Aer Lingus would be bad for the country.
"Anyone with a titter of wit could have foreseen this development", Mr O'Connor said in a statement.
"It will enable Ryanair to take out its principal competitor on their main routes, acquire the critically valuable Heathrow 'slots', consolidate market dominance and dictate whatever price they like to airports, with obvious long term adverse consequences for workers and the travelling public alike.
"All of this is a consequence of the nonsensical decision to privatise Aer Lingus in the first place."