Aer Lingus - 6
Walsh was very impressive in front of the Parliament Transport Committee today. Just watched it there. Fortunately if you're against the deal our parish pump politicians made it clear, via their questioning, that it's very likely that IAG will be refused. In fact expect to hear politicians call tomorrow for the government to buy Ryanair's shares and aim for majority control.
Court of appeal has refused permission for Ryanair to appeal to the Supreme Court!
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Course it would do that as pretty standard for judges not to wish to have judgement referred. That's not a ground for not going further.
I doubt the shareholders are going to be happy if they continue pissing money down the drain fighting this, particularly as selling the shares at any price would be a gain now its been written off.
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I'd be interested to learn more about what this policy is - any pointers? Given that the Scottish Government bought Prestwick recently there doesn't seem to be any blanket prohibition on EU governments investing in aviation.
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EI boards viewpoint
Aer Lingus believes that IAG’s proposal can enable Ireland to become a central hub for European traffic across the Atlantic resulting in better utilisation of the infrastructural investment that has taken place at Irish airports
Enhancing Ireland’s position as a natural hub for Europe on the North Atlantic
Ireland’s location at the western-most point in Europe makes it a natural gateway to connect the combined populations of Europe and North America
Accelerating Aer Lingus’ transatlantic, long haul growth plans
Aer Lingus sees the potential for its planned growth in transatlantic traffic to be significantly accelerated and for new US destinations to be added to its network.
Growing employment
Additional transatlantic traffic and destinations growth will create significant numbers of new jobs in Ireland: new direct and highly skilled jobs within Aer Lingus and new indirect jobs in support activities and the tourism sector
Enhancing short haul growth
Aer Lingus’ short-haul services, including on the Dublin, Cork and Shannon to London Heathrow routes, will directly benefit from sales and marketing activity conducted on its behalf by the British Airways, Iberia, Vueling and oneworld partner sales forces
Strengthening Ireland’s connectivity
The anticipated benefits to both Aer Lingus’ long-haul and short-haul networks brought about by Aer Lingus being part of the larger IAG group will result in better connectivity to and from Ireland
Accessing a global cargo network
Aer Lingus' cargo business will benefit from the global network reach and sales channels of the IAG Cargo business. This enhancement of the cargo network is expected to deliver significant benefits and additional options to Irish businesses, in particular the pharmaceutical and semi-conductor industries.
Enhancing Ireland’s position as a natural hub for Europe on the North Atlantic
Ireland’s location at the western-most point in Europe makes it a natural gateway to connect the combined populations of Europe and North America
Accelerating Aer Lingus’ transatlantic, long haul growth plans
Aer Lingus sees the potential for its planned growth in transatlantic traffic to be significantly accelerated and for new US destinations to be added to its network.
Growing employment
Additional transatlantic traffic and destinations growth will create significant numbers of new jobs in Ireland: new direct and highly skilled jobs within Aer Lingus and new indirect jobs in support activities and the tourism sector
Enhancing short haul growth
Aer Lingus’ short-haul services, including on the Dublin, Cork and Shannon to London Heathrow routes, will directly benefit from sales and marketing activity conducted on its behalf by the British Airways, Iberia, Vueling and oneworld partner sales forces
Strengthening Ireland’s connectivity
The anticipated benefits to both Aer Lingus’ long-haul and short-haul networks brought about by Aer Lingus being part of the larger IAG group will result in better connectivity to and from Ireland
Accessing a global cargo network
Aer Lingus' cargo business will benefit from the global network reach and sales channels of the IAG Cargo business. This enhancement of the cargo network is expected to deliver significant benefits and additional options to Irish businesses, in particular the pharmaceutical and semi-conductor industries.
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In the full announcement, it also suggests that IAG may be willing to waive some of its original conditions:
http://corporate.aerlingus.com/iagof...ruary-2015.pdf
http://corporate.aerlingus.com/iagof...ruary-2015.pdf
On 27 January 2015, the Board of Directors of Aer Lingus (the "Board") announced that it had indicated to International Consolidated Airlines Group, S.A. ("IAG") that the financial terms of IAG's proposal (the "Revised Proposal") valuing each Aer Lingus share at €2.55 (comprising a cash offer of €2.50 and a dividend of €0.05 per share) were at a level that the Board would be willing to recommend, subject to being satisfied with the manner in which IAG proposed to address the interests of relevant parties. The Board continues to believe that the financial terms of the Revised Proposal are in the best interests of Aer Lingus' shareholders.
The Revised Proposal remains conditional on, amongst other things, confirmatory due diligence, the recommendation of the Board of Aer Lingus and the receipt of irrevocable commitments from Ryanair Limited and the Minister for Finance of Ireland to accept the offer, all of which may be waived in whole or in part by IAG.
Aer Lingus Chairman, Colm Barrington said: "Over recent weeks the Board of Aer Lingus has listened carefully to the public debate which has taken place regarding IAG's proposal. We have had further detailed discussions with IAG and the Board has a greater understanding of IAG's intentions for the future of Aer Lingus and the proposed commitments that IAG is prepared to make in relation to Aer Lingus. These discussions have further confirmed that it is clearly in IAG's interests to continue to grow Aer Lingus within the IAG Group. The Board's view is therefore that a combination of Aer Lingus with IAG has a compelling strategic rationale and will deliver significant benefits for Aer Lingus, its employees, its customers and for Ireland."
The Revised Proposal remains conditional on, amongst other things, confirmatory due diligence, the recommendation of the Board of Aer Lingus and the receipt of irrevocable commitments from Ryanair Limited and the Minister for Finance of Ireland to accept the offer, all of which may be waived in whole or in part by IAG.
Aer Lingus Chairman, Colm Barrington said: "Over recent weeks the Board of Aer Lingus has listened carefully to the public debate which has taken place regarding IAG's proposal. We have had further detailed discussions with IAG and the Board has a greater understanding of IAG's intentions for the future of Aer Lingus and the proposed commitments that IAG is prepared to make in relation to Aer Lingus. These discussions have further confirmed that it is clearly in IAG's interests to continue to grow Aer Lingus within the IAG Group. The Board's view is therefore that a combination of Aer Lingus with IAG has a compelling strategic rationale and will deliver significant benefits for Aer Lingus, its employees, its customers and for Ireland."
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Good to see 1st reconfigured A330 back today and 2nd one tomorrow , they will be in service almost immed. 3rd A330 goes to BOD tomorrow.
Notice IAG also announced yesterday that non EU shareholding in IAG will be limited to 40%. Wonder if that was raised by the Gov since QR took 9.9% or was it always planned.
Aer Lingus believes that IAG’s proposal can enable Ireland to become a central hub for European traffic across the Atlantic resulting in better utilisation of the infrastructural investment that has taken place at Irish airports
Wonder which PR Firm got paid to come up with that bs.
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Owen, when you plan on spending close to a billion on something, its not like buying a icepop down the corner store.
IAG want to Buy EI, EI want to be bought by IAG.
EI's shareholders are considering the acquisition.
IAG want to Buy EI, EI want to be bought by IAG.
EI's shareholders are considering the acquisition.
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Small airline, small country, small minds –
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Originally Posted by Epsomdog
Worth a read!
Owen, when you plan on spending close to a billion on something, its not like buying a icepop down the corner store.
IAG want to Buy EI, EI want to be bought by IAG.
EI's shareholders are considering the acquisition.
IAG want to Buy EI, EI want to be bought by IAG.
EI's shareholders are considering the acquisition.
There has been no proposal put to shareholders yet.
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Epsomsdog;
An interesting article, thanks for sharing.
While I agree with much of the content, I think it is a little miss informed in some areas.
Namely, critising the failure to grow the company while Ryanair became so big and so successful. Equally, failing to recognise that Aer Lingus has succeeded where others have failed, namely being able to compete with Ryanair and the transformation that they delivered in the face if huge barriers such as union interest, legacy practices and high cost base.
There are next to no examples of legacy airlines in Europe that have expanded into operations that do not involve their home markets, LH tried in Italy, it didn't last long. To have achieved expansion into non Island of Ireland operations a new brand with low cost base would have been needed, by the time Aer Lingus were ready for that the market was saturated with LOCO's, equally legacy carriers doing low cost has often been as MOL describes it an airline with charges for inflight food. So timing is the issue there ...
Furthermore, the writer despite some valid points completely fails to recognise that Aer Lingus has been amazingly resilient opposite Ryanair, making profits, and managing to compete. Other 'national carriers' (let's not debate that term), have folded and burned cash at a rate of knots in the face of similar or less challenge from Ryanair. Equally, other low cost carriers have cut and run in the face of Ryanair competition. Aer Lingus has not.
I do however, agree Aer Lingus does need to be part of a larger operation that can help it expand and grow, and one that offers it connectivity
An interesting article, thanks for sharing.
While I agree with much of the content, I think it is a little miss informed in some areas.
Namely, critising the failure to grow the company while Ryanair became so big and so successful. Equally, failing to recognise that Aer Lingus has succeeded where others have failed, namely being able to compete with Ryanair and the transformation that they delivered in the face if huge barriers such as union interest, legacy practices and high cost base.
There are next to no examples of legacy airlines in Europe that have expanded into operations that do not involve their home markets, LH tried in Italy, it didn't last long. To have achieved expansion into non Island of Ireland operations a new brand with low cost base would have been needed, by the time Aer Lingus were ready for that the market was saturated with LOCO's, equally legacy carriers doing low cost has often been as MOL describes it an airline with charges for inflight food. So timing is the issue there ...
Furthermore, the writer despite some valid points completely fails to recognise that Aer Lingus has been amazingly resilient opposite Ryanair, making profits, and managing to compete. Other 'national carriers' (let's not debate that term), have folded and burned cash at a rate of knots in the face of similar or less challenge from Ryanair. Equally, other low cost carriers have cut and run in the face of Ryanair competition. Aer Lingus has not.
I do however, agree Aer Lingus does need to be part of a larger operation that can help it expand and grow, and one that offers it connectivity
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Who's to say EI has been profitable v Ryanair since neither compete across the Atlantic. Firstly the profitability of the TA routes should be omitted to form any basis of notions of resilience. It may in fact be that EI only break even or loose money on short haul.