So, about O'Leary's decision to launch the bid on EI you first say the following:
Lets see Ryanair board made a collective Board decision on the issue and investors don't seem to have had a problem with it EVER and given already written down value to €0.50 then not sure why they would have an issue now.
Then you say this in the same post about him taking over the shares himself:
Really ?
Think you would find Institutions beating a path to his door to provide funds to invest. Previous track history and success is a good guide for institutions so find the money would be easy.
It seems the irony of your contradictory statements are completely lost on you.
Or rather that you're just happy to reverse your argument when the situation requires.
So which is it? He is the solo boy wonder? Or the Board is responsible for FR's success? Hint: I suggest a hybrid model will suit your argument best here.
Forcing them to sell at €1.06 would put €180 million into the bank with no problem in the world and then let the new shareholder do as they wish.
Would you care to translate that piece of gibberish?
Investors like this don't ask for money to be returned each month as putting in €250 Million and taking €750 Million in 5 years time pays a little more that 1.75%.
Is that a sure fire GUARANTEED return?
Cos I'm trying to think who might actually be up for that kind of punt in these straightened times.
I would suggest Bondermans own lot, TPG Capital, but they're stinging from another little misadventure of a SURE THING. They invested 510M USD in Midwest Airlines, and recently sold it for 31M USD. Ouch!
And anyhow, Bonderman might be at odds with Micko over ownership of EGSS. All's fair in love and war!
Anyhow, you get the picture. Where airlines are concerned, there is no Sure Fire Guarantee. And a lot of people are indeed questiong Mr.O'Leary's obsession with EI, whether you've noticed or not (obviously not).
Wow so full of bitterness.
Coming up with lots of terms you don't understand.
You really don't get the idea of what The Board of companies are for do you.
Bitterness? No.
Schadenfreude, yes.
The man has destroyed enough other people for me (and thousands of others) to look forward to his downfall.
As to the rest of that, you'll have to be more specific.
Companies that invest in Capital equipment are allowed write down the cost of the equipment against profits, over a number of years that has been the position in UK, Ireland and pretty much every country for decades. This is why companies who make money continually invest, to minimise tax.
If you disagree then suggest you write to every govt to change it
I'm thinking - Starbucks!
That would be cool, wouldn't it?
If the hard pressed tax paying public were to suddenly feel exploited by a Corporation which touts a consumer friendly image (as Starbucks and FR does), while arranging to pay a fraction (or zero) tax. Then comes the backlash.
Ah well, we can dream...
Edit
On the subject of Ryanair and taxes, I just read this posting from another thread on this BB. My God, the convolutions! The sheer dodginess! And the Italian thing doesn't seem to be the dead duck you've painted it as....at least not for the poor buggers caught in the crossfire!
It is the intention of the company to provide several different types of contracts through a very complex layer of third party organizations. UK recruitment agencies such as Brookfield and Storm & McGinley, Irish accountant companies such as McNamara, CXC, Scalone, and O'Connor, training organizations such as Dutch CAE or UK East Midlands Training LTD, and even Ryanair LTD themselves are all involved in providing employment contracts to Ryanair pilots.
The same applies to Cabin crew who have to deal with agencies such as: Crewlink, Dalmac (also known as Workforce International), or St. James Management for their employment contracts.
The "management fee" you mention is charged by the above-referred Irish accountants for their services. It is in fact 3% (not 2) on the gross salary, or 1000 euros per year (there are two different sets of charges). These accountants are specifically selected by Ryanair and the recruitment agencies.
Most of the pilots who joined the company in the last 3 years are on the following contract: commonly called the "new" Brookfield contract. Here is how it works:
-Four parties are involved: Ryanair (the "Hirer"), Brookfield Aviation International LTD (the "Contractor"), the pilot's LTD company (the "Service company"), and the pilot (the "service company's representative").
-The pilot MUST create a LTD company (the service company) in Ireland through one of the 4 approved accountants (mentioned above). The pilot cannot freely choose his/her own accountant. These "approved" accountants have a number of ready-made empty shelf companies. 3 pilots (chosen randomly by the accountant) become associates and directors of the company. The pilots have NO CONTROL whatsoever on their own company as the accountant is the sole administrator. The accountant receives monthly payments from the contractor (the agency) and distributes salaries to the directors (the pilots) after deduction of company's expenses (filed by the pilot monthly), the accountant's fee and all Irish income taxes (PAYE, USC) and Irish National insurance (PRSI). The pilot, who is one of the nominated Directors, is in fact salaried through a dodgy and complex structure on which he/she has absolutely no control.
(Ryanair provides a monthly remittance advice to Brookfield. This details the amount of scheduled hours flown by the pilot. Brookfield issues payment to the Irish accountant in accordance with contracted terms. The accountant issues then payment to the pilot after said-deductions. Brookfield and the accountant being the "middle-men" get commissions for their services rendered).
Income Tax and Social Tax issues:
Ryanair has bases all around Europe and operates many domestic routes in Spain, France, Italy and now Greece (amongst others). Pilots (and cabin crew) are BASED in these countries. This means that they start and finish their duty in the same foreign base. Many of these crews aren't Irish citizens, nor Irish residents and in fact some even never ever set foot in Ireland! Many of these crews are Spanish, French or Italian Nationals with their fiscal residence set in their home countries. Their interests are clearly at home and not in Ireland. However, with the employment system described above, they HAVE to comply with the Irish taxation laws:
In January 2011, the Irish Finance Act was modified (Section 127B of TCA 1997) and stated the following:
"Any income arising to any individual whether Resident in the State or not, from any employment exercised onboard an aircraft that is operated in international traffic and where the aircraft is so operated by an enterprise that has its place of effective management in the State (Ireland) shall be chargeable to Tax under schedule E" (Irish Income Tax rates).
In other words ALL crew employed in Ryanair (employees or contractors) must pay their income taxes in Ireland, regardless of their tax obligations in their home countries. Most EU countries have DTA's "Double Taxation Agreements" which 'should' allow workers employed abroad to decide where they want to pay tax (country of residence or country of work). However, the Irish Revenue now disregards the DTA (except for the UK and the Netherlands) and states that the Finance Act supersedes these situations.
Unfortunately for the crews based in France (full time 2007-2011 and summer base 2011-2012), in Italy or in Spain, the situation is becoming increasingly difficult. The local tax man is now knocking at the door of the based crews claiming income (and social) tax which hasn't been paid in the country of residence.
Very recently some crews in Bergamo, Italy have received letters from the Italian authorities in that respect.
In regard to social tax, the EU Regulation 465/12 states that social tax must now be paid in the country of residence (for all workers hired after 28 June 2012). This basically means that Ryanair pilots (and cabin crew) working in Italy or Spain (or anywhere else in the EU for that matter) must comply with local regulations in terms of social/national insurance and pay their contributions. Although these are already paid in Ireland through the accountant's administration rules: the PRSI (pay related social insurance) is deducted from the gross salary issued to pilots. By the way, the same applies to Ryanair employees.
Does this means that flight crew will soon have to pay twice? Pay income tax and social tax both in Ireland and country of residence? What will Ryanair do to protect the workforce? Not much IMHO as in fact the "workforce" is not employed by Ryanair but are in fact independent contractors who are self-employed, therefore obliged to maintain contractual and legal obligations.
http://www.pprune.org/rumours-news/5...safety-17.html