DUBLIN

[Lord Lardy]

Aer Lingus is after all majority owned by the Irish taxpayer and Ryanair.

Whilst in theory everything you say would make sense, Aer Lingus is now a plc and not a state owned airline anymore. It may have shareholders in the Government and Ryanair but it also 45% owned by other parties. Aer Lingus are generally staying quiet on this and so they should be. Right now they are the legal tenants of the hangar. It is not for them to comment as they can't be moved unless their lease is challenged in the courts. If the DAA exercise the clause in removing them they could potentially be sitting on a gold mine. They will then have 12 months to move and that's after the legal wrangling takes place. They can also enforce the clause in insisting they move to a hangar of similar size to be built by the DAA. This will delay things even further. The board of Aer Lingus won't bow to pressure from Ryanair to move without a significant financial payoff from some party, and nor should they. I would expect the same if the situation was reversed and Ryanair were occupying it. They are a business not a charity and by moving at the present time without an incentive will do nothing to help their financial position. They did not create the problem.

As I have said before the answer to a solution in all this would be if the Ryanair shareholding in Aer Lingus was put up for sale in exchange for the hangar I believe the Mangagment in Aer Lingus would as Noel Edmunds would say 'DEAL'. Michael Cawley of Ryanair at a recent meeting said that the shares are for sale only no-one will buy them. The Government now have an opportunity to broker a deal through these means. O Leary has gone on record many times as saying Aer Lingus is a basket case with no future and will go under. He could now get some return for his shareholders on what so far has been a disastrous investment along with getting the hangar he wants for his own needs. It would certainly test how serious he is on both counts. Hardly likely to happen but a deal breaker and compromise all the same. All parties would walk away happy.

[Tooloose]

I suspect that the reason why MOL is determined to have hangar 6 and no other hangar has less to do with the hangar inself than with the large amount of office accommodation attached to it. When the Ryanair HQ building was erected in 1991, MOL persuaded Aer Rianta (as the DAA was then) to provide the land rent free for twenty years. So, at the end of this year, FR will have to start paying rent to the DAA for the land on which their HQ stands. Obvoiusly, this would not sit well with the pay for nothing philosophy of MOL. When he realised that he had missed a glorious opportunity to avoid paying this rent and leaving the DAA with a building for which they have no use and no likely tenants he set about using the unfortunate redundant SRT workers as hostages to pressurise the Govt., the DAA, the IDA, Aer Lingus and the opposition parties into handing hangar 6 over to him and providing him with a new free HQ building. It has more accommodation than his Present HQ. He missed the boat last year but his current campaign is very well planned and orchestrated using all his usual mouthpieces such as the Sindo/Indo and the "aviation expert" JG of B...... Stockbrokers. If he gets it he may very well employ 300 ex-SRT engineers but it will not be long before the blackmail starts again and he he is threatening to move all the work to some lower cost overseas alternative unless the govt. and the DAA give him the devil and all. And it should not be forgotten that Aer Lingus has already employed a large number of ex-SRT engineers for its new Line Maintenance Operation.

[mini]

"I suspect that the reason why MOL is determined to have hangar 6 and no other hangar has less to do with the hangar inself than with the large amount of office accommodation attached to it. When the Ryanair HQ building was erected in 1991, MOL persuaded Aer Rianta (as the DAA was then) to provide the land rent free for twenty years. So, at the end of this year, FR will have to start paying rent to the DAA for the land on which their HQ stands. Obvoiusly, this would not sit well with the pay for nothing philosophy of MOL. When he realised that he had missed a glorious opportunity to avoid paying this rent and leaving the DAA with a building for which they have no use and no likely tenants he set about using the unfortunate redundant SRT workers as hostages to pressurise the Govt., the DAA, the IDA, Aer Lingus and the opposition parties into handing hangar 6 over to him and providing him with a new free HQ building. It has more accommodation than his Present HQ. He missed the boat last year but his current campaign is very well planned and orchestrated using all his usual mouthpieces such as the Sindo/Indo and the "aviation expert" JG of B...... Stockbrokers. If he gets it he may very well employ 300 ex-SRT engineers but it will not be long before the blackmail starts again and he he is threatening to move all the work to some lower cost overseas alternative unless the govt. and the DAA give him the devil and all. And it should not be forgotten that Aer Lingus has already employed a large number of ex-SRT engineers for its new Line Maintenance Operation."

At last, a viable theory. This whole story had me wondering from the start as to what MOL/FR were really after. Listening to the various radio interviews, MOL seemed to come unstuck on the issue of being offered a new build hangar vs H6, the above explanation would cast some light on the possible reasons for this.

In fairness, he picked the weakest link in targeting the Gov. 2IC. (lovely person but waaay out of her ability zone) That the opposition rowed in is no suprise but I'm suprised the Unions weren't a bit more savvy before they offered support on his behalf - inquiring about T&C in advance of pitching in might not have been a bad move...

Anyway, won't happen, FR will move their MX somewhere that will subsidise it, causing the max political/DAA damage they can in the meantime.

Really tough on the guys that had their hopes raised (blame FR on raising a never possible scenario) but probably the best outcome in terms of long term investment integrity.

IMHO

[EISNN]

OK, if that is correct info can you ask your informant where the A330's were being (line) maintained before the date of commencement of the 20 year lease of Hangar 6?

EI have an A330 size hangar in SNN which is used nearly every day. But we are all only too aware that EI want out of all A330 operations in SNN so the requirement for a large enough hangar in DUB to carry out their A330 maintenance. Hangar 6 is the only one in DUB large enough.

C check maintenance for EI A330's is currently being carried out near Dinard in Brittany, France.

It seems to me that MOL is throwing his toys outta the cot for the laugh. There's no true reason for FR to have H6 when there are more than enough other vacant hangars around in DUB. That aside he was asked did he want it back in November and he declined the opportunity. EI were asked in December and they took it. So I reckon it's more a case of MOL not using his noggin' and doing what EI are rumoured to be doing with it. (transfer their hq offices to there as well)

[Sober Lark]

Who is the minister for empty buildings anyway?

Lets imagine in addition to creating jobs the man really wants Hangar 6 as a low cost terminal. Help me understand what's the problem with that?

[apaddyinuk]

I really dont think any of this has to do with undermining EI, undermining the DAA, the best use of hangar 6 etc etc etc. Its all about MOL drumming up more support from the ignorant masses to make the government look like incompetant idiots at a time when the public already are weary of them and sure if the DAA, EI and any other organisation can be involved for the sake of it so be it...that is the MOL way!

Now a little birdy tells me he is more pissed of that Aer Lingus out bid him for hangar 6 hence he is now having his little hissy fit!

[Bearcat]

Its all about MOL drumming up more support from the ignorant masses to make the government look like incompetant idiots at a time when the public already are weary of them and sure if the DAA, EI and any other organisation can be involved for the sake of it so be it...that is the MOL way!

could'nt agree more...think he's fed up with coughlan the minister of no jobs plus all the other angles. Likwise did I see the bold Michael come out of govt buildings in white runners, jeans and a blazer? The runners thing is hilarious....the man does'nt give a rats how he presents himself but has them all in govt running for cover.....I'm delighted to see him sticking the knife in.

[Seljuk22]

Cimber Sterling will start 4 weekly flights to Billund with CRJ-200 from 31st March.

[CamelhAir]

Lets imagine in addition to creating jobs the man really wants Hangar 6 as a low cost terminal. Help me understand what's the problem with that?

Another firm, who happens to be his main competitor, has a legally binding lease to the building. They are not interested in vacating it. So game over.
What's so difficult to understand? This is the world of business.
I fancy your house, it'd be more suitable for me and I want it alone. But you don't want to sell to me. Will I go to the government to force you?
The pikeys position is idiotic and he knows it. The media and public are regrettably not so clued in.

You might also like to remember that most ryanair staff in Ireland are not Irish and pay very little income tax, so ryanair jobs make little difference to the dole queues and contribute tiny amounts only to the exchequer.

[Sober Lark]

Business? Yes Aer Lingus are in the red. They lease a hangar which they leave empty while their aircraft are serviced in France. Selling the lease should be part of EI's cost saving plan.

The only reason others have to block it is because if Ryanair gets their low cost terminal then it may have a negative impact on competition - the consequences of being successful. Crazy stuff!

By the way, how many do Ryanair actually employ in Ireland?

[MCDU2]

Actually we are in a shade of black allegedly.

You clearly need to get out and do some more spotting. When I went into work last there was a 330 and a 321 parked up in hangar 6. Contrary to popular belief not all of the maintenance is done in Dinard. Watch this space for news that it might be brought back in house.

We have only had the thing for the guts of a month so no doubt the builders/sparkies etc will be going through the place getting it all geared up for the big move that will see all of flight operations consolidated under one roof. Hence the need for the hangar in the first place.

[bia botal]

jes it would be some laugh if aer lingus converted it into a low cost terminal.............................

[ayroplain]

News : RYANAIR RELEASES WRITTEN PROOF OF ITS PLANS TO USE HANGAR 6 FOR?

I think this confirms my interpretation (earlier in this thread) of what went on here

[MarkD]

How will Fingal feel about being done out of 350k/pa at MOL's behest?

[colegate]

Ireland has two main airlines. RYR is one of the most successful airlines in the world, it carries more international pax than any other airline, it is profoundly profitable, it has massive cash balances, it carries more pax than any other European airline. EIN staggers from crisis to crisis and it is currently in crisis. RYR needs more maintenance capacity as it moves into heavy checks for the first time. DUB is one choice and there is virtually unused capacity there. So why not try and use it and thereby create jobs for people who have been made redundant. It is a no-brainer. Of course the Irish govt should facilitate this plan. It will help EIN. Ireland has a few days before RYR decide to put that work elsewhere. It is crazy for Cowen to oppose this plan which will create Irish wealth

[potkettleblack]

Do you honestly believe everything that you read in the papers.? You are incredibly naive if that is so. How many jobs do you really think MOL was going to create, if any? He said "UP" to 300 in the letters posted earlier in the week. Well 1 job is up to 300 in my books. He always has an ulterior motive you can be assured of that.

Remember he was going to "create" 1000 jobs when he got his hands on Aer Lingus last time around. Notice he didn't say anything about the 3-4,000 job losses though.

[Just a spotter]

Well, it would seem that the speculation on this forum that FR wanted the attached office space on hangar 6 as much as anything else was spot on.

From today's Irish Independent

O'Leary wants Hangar 6 to become his new HQ - Irish, Business - Independent.ie

JAS

[Sober Lark]

For balance please find copy of letter in today's Irish Times below.

Madam, – Michael O’Leary’s use of the lives and job prospects of 300 aircraft engineers at Dublin Airport as pawns in another of his petulant and high-profile attacks on the DAA and the Government is a gross insult to the people involved. Further, his attempt to force the Government to tortuously interfere with Aer Lingus’s lease of Hangar 6 is outrageous.
Hangar 6 is the only hangar at Dublin Airport capable of accommodating more than one of the large wide-body Airbus A330 aircraft that Aer Lingus uses for its transatlantic services. Maintenance of these aircraft has been undertaken in Hangar 6 on behalf of Aer Lingus by SRT and predecessor companies for more than 10 years. Following the departure of SRT last year, Aer Lingus moved to protect its A330 maintenance capability by employing 96 staff from SRT and entering into a 20 year lease of Hangar 6. There are no circumstances under which this lease can be broken in order to provide the hangar to a third party.
Aer Lingus currently employs 230 maintenance employees, who are now engaged in maintenance work in Hangar 6. Aer Lingus’s fleet, its operations and the jobs of its 3,000 employees all depend on this work being completed regularly. Aer Lingus expects that the level of maintenance at Dublin will continue at least at the present level, and may increase as conditions in the airline industry improve. These are real, well-paid jobs that will continue for the foreseeable future.
Every night, Aer Lingus has an average of more than three aircraft in Hangar 6 for routine and unscheduled maintenance, and can have as many as six in the hangar at any one time. Most of this work takes place outside daylight hours.
There are five other hangars at Dublin Airport, all of which are suitable for maintenance of the smaller narrow body aircraft used by Ryanair.
If Mr O’Leary is truly interested in establishing an aircraft maintenance facility at Dublin Airport – and of actually hiring 300 people here – then he will not be prevented from doing so by a lack of hangar space. But his refusal to act in a normal commercial manner and to deal on the issue with the DAA (with which he interacts on a daily basis), and his attempts to overturn a legally binding contract between the DAA and Aer Lingus, all suggest that he is merely engaged in another of his quixotic attacks on those who won’t bow to his every whim.
The Government, the IDA, the DAA and Aer Lingus have offered full support in developing a maintenance facility at Dublin Airport, but Mr O’Leary has refused to engage unless he can have something that doesn’t belong to him – another child’s toy. He shows no regard for the 300 people who were led to believe that they might have job opportunities at this purported facility nor for the 230 people who are already employed by Aer Lingus in Hangar 6.
These people are being used as pawns in some twisted game that would appear to have little to do with jobs or aircraft maintenance. – Yours, etc,
COLM BARRINGTON,
Chairman,
Aer Lingus,
Dublin Airport,
Co Dublin.

[Skipness One Echo]

RYR needs more maintenance capacity as it moves into heavy checks for the first time.

Really? Thought they sold the fleet on before they got into that territory. I know that they have re-sprayed some of the older airframes into the new colours during planned mainteneance but that's about the limit I think....

[vkid]

This hangar 6 story may not be over yet..


Could get very interesting next week.