!! Ryanair Makes 3rd Bid For Aer Lingus !!
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Keeping in with: Ώthe chief organ grinder or a troup of monkeys?
"O'Leary has made so many friends in Government(Dublin), Brussels ,London and Abu Dhabi that they are unlikely to let him get his way." says DD.
But what about his free loan of a Ryanair plane to swish the Transport Commissioner of the EU around during the last Irish EU referendum.
Was that done out of the profound charitable instincts of MOL's religious soul ?
Or was it more akin to a business deal as in the case of Rupert Murdoch dealing with Thatcher/ Blair/ Brown/ Cameron ?
But what about his free loan of a Ryanair plane to swish the Transport Commissioner of the EU around during the last Irish EU referendum.
Was that done out of the profound charitable instincts of MOL's religious soul ?
Or was it more akin to a business deal as in the case of Rupert Murdoch dealing with Thatcher/ Blair/ Brown/ Cameron ?
Last edited by BigFrank; 20th Jun 2012 at 12:20. Reason: Spelling
Aer Lingus board have say Ryanair's offer undervalues the airline as they have 1 billion sitting in the bank and they only offered over 600 million.
Investor Relations - Investor Relations - Corporate Aer Lingus
For those who wish to do their own searching.
Racedo is the debt not from aircraft purchased? Would the aircraft have an asset value then, no?
Given fleet age average is 6.5 years then in current market you take your chances.
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Does anyone know what aircraft Aer Lingus own that money has to be paid back on? ie how old are they? There were a good few aircraft bought in recent times how many of those make up the debt? It's just so as to get a better idea of how much money could be made back if they were to be sold off.
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They own 60% of there fleet. I know the 3 A321 are leased and some A320. Almost sure they own all the A330. 2 A320 leases will end lather this year and the 2 A319 will replace them. They also have an A320 for sale. The 4 A319 are leased also.
Last edited by PPRuNeUser0176; 21st Jun 2012 at 10:23.
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well if (and that's a big IF) that's the case surely the debt would be more than covered by the sale of the aircraft that don't suit the FR model, Ryanair then gets near to 1 billion in cash gross or 400 million in cash net which ever way you want to look at it plus whatever monies are left over from the sale of the aircraft after the debts are paid off.
Anyway, I don't see it happening ........ look at Olympic and Aegean in Greece ...... not allowed to merge. BA and BMI merger is apples and oranges in comparison due to there being more local and foreign operators (EasyJet, Ryanair, Virgin, Lufthansa, KLM, Aer France, Jet2, Flybe and let's not forget to mention the charters) in the UK than there is in Ireland or Greece and in turn allowing for competition. In Ireland and Greece with only two major players in both countries holding anything up to 80% of the operations in each country it wouldn't be healthy and FR would no doubt turn into one of the monopolies that Michael O'Leary speaks of at such great length given any opportunity such as the DAA and might I add ...... RIGHTLY SO.
My thoughts on it are this: the UK competition authorities are now investigating the FR shareholding in EI. Odds are that FR will be told to sell most if not all of their shares in EI. So FR announces a 'large' offer of 1.30 a share for the remaining 70%. FR could now be quietly selling/dumping their shares at the 1.05 a share that they are at the moment as that's probably the best offer they'll get cos when/if the UK competition authorities tell FR to sell the share price in EI would drop as FR are forced to sell their shares.
These are only my thoughts on it but maybe someone else has another theory. I'm keen to hear others opinions and thoughts on what's going on at the moment.
Another thing. Is it true that after you've made three attempted take overs you can't attempt a fourth by law? A friend of mine who works in EI was telling me this yesterday. It kinda makes sense but at the same time I'm not sure. I'm not familiar with company take overs or the law in these matters.
Anyway, I don't see it happening ........ look at Olympic and Aegean in Greece ...... not allowed to merge. BA and BMI merger is apples and oranges in comparison due to there being more local and foreign operators (EasyJet, Ryanair, Virgin, Lufthansa, KLM, Aer France, Jet2, Flybe and let's not forget to mention the charters) in the UK than there is in Ireland or Greece and in turn allowing for competition. In Ireland and Greece with only two major players in both countries holding anything up to 80% of the operations in each country it wouldn't be healthy and FR would no doubt turn into one of the monopolies that Michael O'Leary speaks of at such great length given any opportunity such as the DAA and might I add ...... RIGHTLY SO.
My thoughts on it are this: the UK competition authorities are now investigating the FR shareholding in EI. Odds are that FR will be told to sell most if not all of their shares in EI. So FR announces a 'large' offer of 1.30 a share for the remaining 70%. FR could now be quietly selling/dumping their shares at the 1.05 a share that they are at the moment as that's probably the best offer they'll get cos when/if the UK competition authorities tell FR to sell the share price in EI would drop as FR are forced to sell their shares.
These are only my thoughts on it but maybe someone else has another theory. I'm keen to hear others opinions and thoughts on what's going on at the moment.
Another thing. Is it true that after you've made three attempted take overs you can't attempt a fourth by law? A friend of mine who works in EI was telling me this yesterday. It kinda makes sense but at the same time I'm not sure. I'm not familiar with company take overs or the law in these matters.
Last edited by EISNN; 22nd Jun 2012 at 00:35.
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Does IAG have the cash and inclination to step in? It's not like they don't have someone who knows where the bodies are buried at EI.
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IAG doesn't have the inclination, it said the pensions cost had put it off last year I seem to remember
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he has competition it seems...from Turkish Airlines. Bit of an odd one imo
Turkish Airlines emerge as contender for Aer Lingus bid | BreakingNews.ie
Turkish Airlines emerge as contender for Aer Lingus bid | BreakingNews.ie
Mr Walsh recently ruled out IAG making a further acquisition any time soon, citing under-par performance from Iberia due to the euro crisis, the time taken to integrate BMI, and general economic uncertainty.
They have therefore withdrawn from the TAP acquisition, and have nothing to gain from purchasing Aer Lingus.
They have therefore withdrawn from the TAP acquisition, and have nothing to gain from purchasing Aer Lingus.
Let's assume Turkish has the money, and that the Irish Govt and other major shareholders are willing to sell.
What could Turkish achieve with Aer Lingus that Etihad could not ?
Can Turkish obtain a shareholding of more than 49%, if necessary through various carefully domiciled shell companies, while Aer Lingus retains its traffic rights to/from Dublin and its status as an EU carrier ?
What does Turkish gain by having a 49% shareholding in Aer Lingus ?
What could Turkish achieve with Aer Lingus that Etihad could not ?
Can Turkish obtain a shareholding of more than 49%, if necessary through various carefully domiciled shell companies, while Aer Lingus retains its traffic rights to/from Dublin and its status as an EU carrier ?
What does Turkish gain by having a 49% shareholding in Aer Lingus ?
Last edited by davidjohnson6; 25th Jun 2012 at 09:40.
Forgive me if I'm being very naive, but if Turkish own either 49% or 51% of Aer Lingus, how does the EU-US open skies agreement permit Turkish to take advantage of the transatlantic air transport liberalisation from Dublin airport ? As far as I was aware, there is no immediate prospect of Turkish airlines having rights to fly between 2 EU airports. Turkey is a long way from becoming a full member of the EU.
Turkish as a member of Star Alliance already has capacity to exchange feed with United at Chicago, Washington, Los Angeles and soon Houston, and also flies to JFK. United will open Istanbul-Newark next month. The only flights currently between Dublin and Istanbul is a once-per-day A320 / A321 / B738 which suggests the demand for O&D between these 2 cities is not huge.
Turkish can currently offer direct flights to the USA from Istanbul. Why would Istanbul based passengers put up with changing flights in Dublin ? Why would a passenger from outside Turkey want to change in IST *and* DUB, just to reach a hub in N.America ? Furthermore, by increasing the number of stops, Turkish lose the pricing power that comes from non-stop flights compared to airlines who can provide 1-stop connections
I'm guessing there is something that can be achieved, but I'm afraid I just don't understand the economic rationale for Turkish taking control of Aer Lingus within either the current legal framework, or the legal framework in the next 18 months.
Can someone explain what Turkish gain in more obvious terms please ?
Turkish as a member of Star Alliance already has capacity to exchange feed with United at Chicago, Washington, Los Angeles and soon Houston, and also flies to JFK. United will open Istanbul-Newark next month. The only flights currently between Dublin and Istanbul is a once-per-day A320 / A321 / B738 which suggests the demand for O&D between these 2 cities is not huge.
Turkish can currently offer direct flights to the USA from Istanbul. Why would Istanbul based passengers put up with changing flights in Dublin ? Why would a passenger from outside Turkey want to change in IST *and* DUB, just to reach a hub in N.America ? Furthermore, by increasing the number of stops, Turkish lose the pricing power that comes from non-stop flights compared to airlines who can provide 1-stop connections
I'm guessing there is something that can be achieved, but I'm afraid I just don't understand the economic rationale for Turkish taking control of Aer Lingus within either the current legal framework, or the legal framework in the next 18 months.
Can someone explain what Turkish gain in more obvious terms please ?
Last edited by davidjohnson6; 25th Jun 2012 at 10:56.
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Forgive me if I'm being very naive, but if Turkish own either 49% or 51% of Aer Lingus, how does the EU-US open skies agreement permit Turkish to take advantage of the transatlantic air transport liberalisation from Dublin airport ?
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sounds a bit like Swissair buying a 49% stake in Sabena in 1995... see Google to see what happened next !