As stated by Mr Cullen you can not take EI private if the company is 28% state owned and they don’t want to sell. That is the story full stop. You can make it very difficult for a company to operate though!
There isn't any way FR can take it private if the government dig in, never mind the employees and other investors.
"The Minister claimed it's a defensive move by Ryanair to guard against the threat of a stronger well-resourced Aer Lingus and Ryanair is trying to recreate an aviation monopoly."
I think this is partially right and is economic and a bit of an ego mission mixed together. There are more important issues on the agenda. EI are pushing FR finally in a different manner of ways to previously but not as much as EI would want or could achieve…..
The potential of LHR slots is not the main consideration in the short or medium term either, it is a factor though. I know there are investment analysts looking at this thread especially when this particular issue comes up. These slots have been safe guarded for quite a while as previous posters have stated in their evidence and links! This is not one of the primary reasons in this takeover.
The ego thing is something that is a consequence of a business deal like this and you can be sure there is a certain amount of satisfaction going on about this. I don't think this is the main reason either.
People are underestimating the value of Dublin slots in all this! This is the "Tiger economy" of Europe at the moment. There has been quite a bit of heavy discussion that went on about this with a few court rulings over the past few months which I thing people have missed in all of this.
Long haul is something FR wants to get involved in and out of DUB and the purchase of EI will enable this in many ways, ETOP'S approval under a seperate AOC etc. The special links between the US and EI have been around for years and if open skies came to fruition FR would want a bite of that cake which might be easier than many other European countries to negotiate.
Linking all the major UK(name a city FR don't serve in the UK), Irish and other European cities up to DUB to serve transatlantic services is and I think would have already been an objective. No Interline agreement though. Just a % off a DUB-JFK if you have used FR inbound and outbound from DUB, maybe? Who knows... but you can sell anything at the right price.
The LHR slots have a multi purpose in either being for sale or use by a long haul FR.
Qualified man power is another factor, unions or not unfortunately. KLM UK can vouch for this! A few hundred qualified pilots is always something FR would be looking to get hold of. They think that the unions can be strangled to accept any deal FR will offer in the end of a prolonged strategy to shut down EI.
BA and Virgin and the other major US carriers as a whole should be and I think will be worried at the current course of events.
This company has to spend the money they have though. A dividend was about due. 2 BN Euro and no dividend and people would have to be asking questions on what and are the reasons as to no dividend as the company maintained unprecedented growth. Instead of "wasting cash" on paying back shareholders on their financial backing (Boeing, banks and lease backs cash included), the money is to be spent on basically further expansion. I am and would be asking major questions to why FR are not paying dividends when they are a huge PLC with huge profit margins and plenty in the bank. Why are the CEO and board keeping your money? This is after all your money FR is using to buy EI!
I think he will enjoy spending it. You always do if it isn't yours! Not so much to lose...
