There is also one other possibility in the IAG-EI picture that should be considered ... the idea of an "inversion takeover", where one company takes over a second that's in a lower tax jurisdiction and then relocates it's head office to the acquired business's HQ.
Is it possible that IAG is viewing the Irish 12.5% corporate tax rate as a benefit of purchasing EI? Might Aer Lingus's status as an Irish company be, in and of itself attractive to a potential buyer? Could IAG become an Irish domiciled organisation for tax purposes should the purchase take place?
Interesting idea, but probably a happy bi-product than the main motivation. Corporation tax is 30% in Spain and 21% in the UK, yet IAG is Spanish based.
IAG approach
I was just reading a very detailed article online with compelling analysis of the competitive position on the Atlantic by carrier.
Could you post the link please,
EI-BUD, it sounds like an article worth reading.
What about the slots serving Cork and Shannon, surely the Irish Government will have an interest in them as well.
Yes, would imagine that these would ned to be safeguarded.
Varadkar is on record as saying that any "agreement" over the preservation of slots is not worth the paper it's printed on. There is little or no legal basis to enforce them once the government sells its shares save the EU coming up with some legislation to assist little ole Ireland. Market forces will dictate where the slots will be used.
Varadkar is history, he's now at health, but he may, of course, be right.