FR has formally denied this morning's story in the Indo
http://today.reuters.co.uk/news/arti...US-RYANAIR.XML
Not really surprising; it was complete guesswork and scaremongering; really didn't add a lot to the whole debate.
If I were a betting man, I'd say that the govt and EI are scrambling around this weekend to find an alternative bidder for EI shares - say around 10-15%, sufficient to hold FR at bay. I would imagine that there is a lot of telephone negotiation going on, relating to EI slots at LHR ... and I can't help wondering if WW is involved?
Personally, the idea of FR being a long term shareholder in EI doesn't upset me that much; indeed, it could be a good thing on a number of levels:
- It's unlikely to destroy an airline in which it has a financial interest;
- Will it "allow" EI to benefit from FR's purchasing ability with Boeing, when it comes to ordering 787s?
- If FR/MO'L are serious about what they suggested in their "project bargepole" intro last week, much of this can be done without being a majority shareholder;
- It is arguably a test of good faith on MO'L's part; if he is serious about these promises, let him put them into effect as a minority shareholder; if what he is suggesting is good for EI, then the airline can work with him; if, on the other hand, he chooses to go for a majority shareholding, then that will be used as evidence that what he is suggesting is not good for EI; surely MO'L knows the importance of trust and building it. We will need to see some evidence of MO'L's bona fides towards the airline and its employees and as I said, allowing EI to benefit from FR's purchasing power with Boeing might be a very good start in that ... Even if FR is just a minority shareholder, it can only stand to gain.
All of that may sound naive in a cut-throat business world, but MO'L will see the importance of trust and confidence in a venture like this. Perhaps we'll see ...