Aer Lingus May Never Be Sold Off!!
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Aer Lingus May Never Be Sold Off!!
From Today's Irish Independent
Ahern puts brake on sale of key state firms
THE Government last night signalled it intends to shelve plans to privatise major State assets before the next election.
Up to now it had been expected that key State assets such as Aer Lingus were being geared for sale.
The manner in which Taoiseach Bertie Ahern yesterday ruled out a management buyout (MBO) at the airline was viewed as evidence the Government will not risk confronting the unions on such matters.
The dramatic development came days after Seamus Brennan was removed as Minister for Transport. That was seen as the first clear sign the Government was backing off on privatisation. Mr Brennan was widely seen as being well disposed to some moves towards even part-privatisation of the airline. The moves were seen as evidence any sale is being long-fingered at least until after a general election. Decisions on other issues such as bus privatisation are also likely to be parked.
Transport Minister Martin Cullen will in days receive a consultants' report on future options for Aer Lingus. A Cabinet sub-committee will be chaired by Mr Ahern when he returns from a trip to the Far East.
Aer Lingus chief executive Willie Walsh told the Oireachtas Committee on Transport he met with the Secretary General at the Department of Transport Julie O'Neill on Monday and said management had no interest in an MBO.
Mr Walsh said they had spoken of seeking outside investment but never spoke of a "management buyout". Outside investment proposals had been withdrawn.
Under pressure in the Dail, Mr Ahern said he did not believe a buyout was compatible with the mandate of Aer Lingus. He did not, however, disclose that the Government had been told on Monday the buyout was no longer an issue. The controversy returned to the agenda yesterday after Socialist TD Joe Higgins asked the Taoiseach in the Dail why the Government had not dismissed the airline's chief executive, chief financial officer and chief operations officer for their "stunning conflict of interest".
He claimed they had been seeking privatisation of the airline "so that they could buy it themselves and, in the process, make an obscene financial killing".
Fine Gael Transport spokesman Denis Naughten said the lack of any decision on future ownership of Aer Lingus was threatening its future viability. Siptu national industry secretary Michael Halpenny said the Taoiseach's view an MBO was inappropriate was correct. Michael Landers of the Irish Airline Pilots' Association (IALPA) said they would support staff ownership of the airline.
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I wonder if Willie is reconsidering his future ??
Ahern puts brake on sale of key state firms
THE Government last night signalled it intends to shelve plans to privatise major State assets before the next election.
Up to now it had been expected that key State assets such as Aer Lingus were being geared for sale.
The manner in which Taoiseach Bertie Ahern yesterday ruled out a management buyout (MBO) at the airline was viewed as evidence the Government will not risk confronting the unions on such matters.
The dramatic development came days after Seamus Brennan was removed as Minister for Transport. That was seen as the first clear sign the Government was backing off on privatisation. Mr Brennan was widely seen as being well disposed to some moves towards even part-privatisation of the airline. The moves were seen as evidence any sale is being long-fingered at least until after a general election. Decisions on other issues such as bus privatisation are also likely to be parked.
Transport Minister Martin Cullen will in days receive a consultants' report on future options for Aer Lingus. A Cabinet sub-committee will be chaired by Mr Ahern when he returns from a trip to the Far East.
Aer Lingus chief executive Willie Walsh told the Oireachtas Committee on Transport he met with the Secretary General at the Department of Transport Julie O'Neill on Monday and said management had no interest in an MBO.
Mr Walsh said they had spoken of seeking outside investment but never spoke of a "management buyout". Outside investment proposals had been withdrawn.
Under pressure in the Dail, Mr Ahern said he did not believe a buyout was compatible with the mandate of Aer Lingus. He did not, however, disclose that the Government had been told on Monday the buyout was no longer an issue. The controversy returned to the agenda yesterday after Socialist TD Joe Higgins asked the Taoiseach in the Dail why the Government had not dismissed the airline's chief executive, chief financial officer and chief operations officer for their "stunning conflict of interest".
He claimed they had been seeking privatisation of the airline "so that they could buy it themselves and, in the process, make an obscene financial killing".
Fine Gael Transport spokesman Denis Naughten said the lack of any decision on future ownership of Aer Lingus was threatening its future viability. Siptu national industry secretary Michael Halpenny said the Taoiseach's view an MBO was inappropriate was correct. Michael Landers of the Irish Airline Pilots' Association (IALPA) said they would support staff ownership of the airline.
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I wonder if Willie is reconsidering his future ??
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unfortunetly for mr walsh and his gang of jackboot hench men, they now realise that they are dispensible.....granted they shaved costs to the ent scale selling paintings off walls......what have they achieved? cost efficency to a degree but they were never going to achieve ryanairs cost base unless they closed down and started again. The brand name of aer lingus is in ruins.....another cheap carrier. The atlantic service which they used to pride themselves is dire especially their so called premier service....(its worth the hassle flying to lhr and going with v/s b/a) the insides of the a330s are worn. granted a/l flies to lots more destinations and the internet deals are to be applauded, but will it be worth the gamble managment took rebranding the carrier cheap and cheerful whereas the other majors carriers remained aloof of dropping to the o'leary standard...
mr walsh is either smarting this morning or has another plan........granted he needs equity to expand but were his dealings with the govt done the right way or is there any right way when one has to deal with ineffectual governments who fear making decisions that may halt their election plans 3 years on?
its all a double edged sword these days...
mr walsh is either smarting this morning or has another plan........granted he needs equity to expand but were his dealings with the govt done the right way or is there any right way when one has to deal with ineffectual governments who fear making decisions that may halt their election plans 3 years on?
its all a double edged sword these days...
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what will happen
why is it that irish taxpayers money is now being flittered away on a mess of a company.at least pre sept. 11 the money was going to some use.i fear that aer lingus will not last the pace set by the bigger airlines and that is sad.how can a company be a low cost carrier when tranches of its flight crew are all over the world on leave of absence and working as contractors,while the company continues to maintain their seniority and pay their pension.you are either low cost or you are not,sh*t or get off the pot!
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The idea that a management buy-out would automatically allow management to make obscene profits in the future is not a given. Don't forget that a sale of a state asset is merely replacing one state asset (shares in a company) for another state asset (cash). It the airline is sold for its true value (based on future cash flows etc.) then obscene profits won't arise no matter who buys it. Its a totally different story if it is sold for less than its true value. Since it is up to the government, as shareholder, to decide on the price it wants it is within its control to ensure that such "obscene" profits do not arise. This should not be a socialist/capitalist ideology issue. If I sell a house worth €400,000 for €200,000 someone will make an obscene profit. It I sell it for €400,000 no obscene profit is made.
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The |Golden Rule still applies:
"The only way to make a small fortune in aviation is to start with a big fortune."
When can you last remember anybody making an obscene profit - or even much of a profit - in aviation.
"The only way to make a small fortune in aviation is to start with a big fortune."
When can you last remember anybody making an obscene profit - or even much of a profit - in aviation.
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Richard Branson of Virgin
Michael O'Leary of Ryanair
Herb Kelleher (sp) of Southwest
Stelios of easyJet
The woman that ran Go
The bloke that runs NetJets
........ and countless numbers of CEO's who made a personal furtune while the airline they were running lost gazillions.
Michael O'Leary of Ryanair
Herb Kelleher (sp) of Southwest
Stelios of easyJet
The woman that ran Go
The bloke that runs NetJets
........ and countless numbers of CEO's who made a personal furtune while the airline they were running lost gazillions.
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Bertie is the obstacle!
The real problem here is that Ahern is allowing the unions to dictate aviation policy. And that's not going to lead anywhere good. Things change; sure, I liked the old EI better, just as I liked the days when jump seats were open for the asking, but times change. The old EI simply was not viable, and certainly not with FR around.
The problem here is not the MBO proposal - if that really was ever a serious runner. It was merely a ploy to get the govt to take EI's future seriously. And given reports I am hearing, I fear very much that this has failed.
If the govt rejects privatisation, it must say what proposals it has to allow EI raise the cash to meet its epansion potential. Time for a dose of reality here!
The problem here is not the MBO proposal - if that really was ever a serious runner. It was merely a ploy to get the govt to take EI's future seriously. And given reports I am hearing, I fear very much that this has failed.
If the govt rejects privatisation, it must say what proposals it has to allow EI raise the cash to meet its epansion potential. Time for a dose of reality here!
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It seems the govt doesn't need the money now thus no priv. - unfortunately that tends to be the best time to sell, not when the airline is in downcycle and the treasury is bare.
If EI's model starts falling apart post-Oneworld etc, it will be too late to sell and the govt won't be allowed inject more capital - what then?
FFF
presume this is irony? MOL has made people who got into FR shares early very happy indeed and easy is still going - Go was a vehicle for getting rid of 73-2G aircraft... now if we are talking about the likes of Don Carty or Bob Ayling...
If EI's model starts falling apart post-Oneworld etc, it will be too late to sell and the govt won't be allowed inject more capital - what then?
FFF
presume this is irony? MOL has made people who got into FR shares early very happy indeed and easy is still going - Go was a vehicle for getting rid of 73-2G aircraft... now if we are talking about the likes of Don Carty or Bob Ayling...
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BEARCAT I THINK YOU ARE RIGHT !!! BUT HE`S A RYANAIR CO-JO WHO OBVIOUSLY BELIEVES THE MOL SPEEL AND THAT IS A RARE THING-MAYBE HE IS NEW-IN WHICH CASE I`LL SAY NO MORE.
CLAW- THEY ONLY PAY THEIR PART OF THE PENSION IF YOU PAY YOURS AND THEN ONLY FOR A MAX OF ONE YEAR. DOES THAT MAKE YOU FEEL BETTER?
CLAW- THEY ONLY PAY THEIR PART OF THE PENSION IF YOU PAY YOURS AND THEN ONLY FOR A MAX OF ONE YEAR. DOES THAT MAKE YOU FEEL BETTER?
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A lot of emphasis has been placed on Aer Lingus's need to replace its Transatlantic fleet i.e. 6 aircraft (all 330's)
my question is ...... why?
the oldest aircraft .... 4 craft delivered in 1994?
one more in 1995
and the remaining one arrived 1999
is it age/condition or up-grading to more modern craft that is behind the need for replacement?
my question is ...... why?
the oldest aircraft .... 4 craft delivered in 1994?
one more in 1995
and the remaining one arrived 1999
is it age/condition or up-grading to more modern craft that is behind the need for replacement?
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I was amused at WW's frantic denials before the Oireachtas committee yesterday of any intent to seek an MBO. He claimed it was all just a 'misunderstanding'.
I'd like to have been there to ask him why (if he really did not want an MBO) he had not publicly corrected the numerous references made in the media to that effect?
Obviously Walsh was happy to let the MBO story grow legs...right up until his mentor Sammy Brennan got the chop!
'Misunderstanding' me bum...Bertie put him back in his box!
I'd like to have been there to ask him why (if he really did not want an MBO) he had not publicly corrected the numerous references made in the media to that effect?
Obviously Walsh was happy to let the MBO story grow legs...right up until his mentor Sammy Brennan got the chop!
'Misunderstanding' me bum...Bertie put him back in his box!
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The Irish Av scene has changed a lot since summer. Fuel prices and other hassles made it look far less appealing for WW and Kearney to buy EI. Politics, new ministers, rebukes from the prime minister - an MBO suddenly looks less appealing.
The value now is in asia. They must be sick looking at what former EI and Ryanair big wig Mcarthy is doing with Air Asia. He stands to make a mint when they go public.
The people in Aer Rianta Dublin expect the WW gang to break up Autumn 2005 and spread their wings East. WIZZ AIR for Dublin apparently if WIZZAIR get anyone form Aer Rianta Dublin to return their calls.
The value now is in asia. They must be sick looking at what former EI and Ryanair big wig Mcarthy is doing with Air Asia. He stands to make a mint when they go public.
The people in Aer Rianta Dublin expect the WW gang to break up Autumn 2005 and spread their wings East. WIZZ AIR for Dublin apparently if WIZZAIR get anyone form Aer Rianta Dublin to return their calls.
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WW wants to be very careful with what he doing.
The missus does a lot of flying between the UK and IRL and says that that EI has gone from really bad to really ****e.
Every flight she's been on has been between one and four hours late coupled with the impending removal of the Gold Circle lounge and Premier the flyers in her company are thinking of moving to BD, BA, WX etc etc ....basicaly anyone but FR. EI are aware of peoples discord because the minute they announced the cessation of Premier all the major account flyers rang in to threaten closing all accounts. Some even threatened to move their businesses out of Ireland.....silly i know but it was in the press so it must be true.
I know for e're in doors, everyone on company business flies business class and they will not be happy with the removal of TAB points and the little trinkets that come with that service.
Wee Willy has immediatly alienated a large chunk of his profit and is not even providing an FR level of service at the moment.
I met WW once and he came across as a very focused guy but couldn't see one degree either side of the C/L. His head strong dive into the LC arena may well come off but with the way things are at the moment I just dont see it.
The missus does a lot of flying between the UK and IRL and says that that EI has gone from really bad to really ****e.
Every flight she's been on has been between one and four hours late coupled with the impending removal of the Gold Circle lounge and Premier the flyers in her company are thinking of moving to BD, BA, WX etc etc ....basicaly anyone but FR. EI are aware of peoples discord because the minute they announced the cessation of Premier all the major account flyers rang in to threaten closing all accounts. Some even threatened to move their businesses out of Ireland.....silly i know but it was in the press so it must be true.
I know for e're in doors, everyone on company business flies business class and they will not be happy with the removal of TAB points and the little trinkets that come with that service.
Wee Willy has immediatly alienated a large chunk of his profit and is not even providing an FR level of service at the moment.
I met WW once and he came across as a very focused guy but couldn't see one degree either side of the C/L. His head strong dive into the LC arena may well come off but with the way things are at the moment I just dont see it.
