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Old 7th Oct 2006, 08:49
  #170 (permalink)  
akerosid
 
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I didn't see DM's interview, but I don't think Alitalia is a particularly good example to use; they pulled out because both FR and EI, both airlines with cost bases considerably lower than AZ's, compete on both routes. AZ is a complete basket case and its latest business plan has failed.

Today's article in the Indo (Irish) was rather unhelpful - pure speculation about the possibility of 1,000 job cuts at Aer Lingus; it doesn't seem to be based on anything more that speculation that MO'L would follow WW's plan for the airline.

Reverting to the idea of FR continuing as a significant minority shareholder in Aer Lingus, surely this also works as a means to test FR's and MO'L's bona fides, in that the positives mentioned in MO'L's initial statements about the takeover of EI are surely achievable without full ownership; both airlines stand to gain. If, however, he feels that he needs majority ownership, might it indicate that what he has in store for EI is not necessarily in EI's interests as a long term business. In other words, minority ownership is the ideal way for MO'L to establish trust and bona fides; if it fails, then MO'L's fault entirely.
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