The Aer Lingus board considered mounting a takeover of BMI, the UK carrier formerly known as British Midland, earlier this year.
The board was looking at fall-back positions in the event the Open Skies deal, which was concluded last week, did not go ahead.
The airline also ran the rule over a number of other European low-cost carriers, including Flybe, which earlier this month bought all of British Airways regional routes to become the largest regional airline in Europe. It flies on 152 routes from 22 UK airports to 36 European destinations.
Although a number of carriers were looked at, the most serious contender was British Midland.
It is understood that the previous Aer Lingus management, led by Willie Walsh, the current British Airways chief executive, also harboured plans to mount a bid for BMI, once it had restructured Aer Lingus. Discussion with BMI did take place, but it is understood they centred on the possibility of Aer Lingus acquiring a number of long-haul aircraft from BMI.
The airline, which is controlled by former baggage handler Michael Bishop, dropped flights between Heathrow and Mumbai last year due to intense competition, leaving it with two surplus aircraft.
Suitable
The Open Skies deal means those aircraft are no longer surplus as all carriers scamble to increase their transatlantic services.
A shortage of suitable airplanes is hampering the growth of airlines around the world.
Even in advance of knowing whether the Open Skies deal would be signed it is understood the Aer Lingus board decided against mounting a bid for BMI.
One source said: "You buy an airline because you want their aircraft, or you want their slots for new aircraft, or you want their management. None of these apply to Aer Lingus."
Unlike Aer Lingus and Ryanair, which operate only one aircraft type and one engine type on their short-haul routes, BMI operates a number or different types, making it a less attractive acquisition target.
That has not stopped Richard Branson's Virgin running the rule over BMI. Mr Bishop and Nigel Turner, the BMI chief executive, have consistently maintained that the airline is not for sale.
Mr Bishop owns 50pc plus one share in the airline. SAS, a Scandinavian carrier, has 20pc, and Lufthansa, the German flag carrier, owns 30pc, less one share.
Although the possibility of a BMI takeover by Aer Lingus is no longer on the cards, that such a move was considered shows the determination of the Aer Lingus board to pursue an independent strategy.
Ryanair, which owns 26pc of the Aer Lingus, is awaiting a European Commission ruling on whether it can go proceed with a takeover of the former semi-State company.
Source: Irish Independent
http://www.unison.ie/irish_independe...issue_id=15412