British Airways weighs Aer Lingus bid
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British Airways weighs Aer Lingus bid
Just thought this might be of interest, sorry if most of you know about it already:
Taken from:
AIRJET AIRLINE WORLD NEWS -- AJN 05JUN2001 07:01 UTC
Airways - Inside the newest issue of Airways July 2001 (Issue No 65)!
http://www.AIRLINEBIZ.COM/wire/airwayspage
M O N D A Y | June 04, 2001 Edition
*** British Airways weighs Aer Lingus bid
BRITISH AIRWAYS is considering a 300 million pound ($424.1 million)
takeover bid for Ireland's national carrier Aer Lingus, Britain's
Sunday Times reported. "We are considering our options with Aer
Lingus and may be interested in purchasing a stake, however large,"
one BA executive was quoted by the newspaper as saying. "We could do
this alone or with a partner. Nothing is decided yet but something
may well happen," the executive said. The newspaper said the Irish
airline was estimated to be worth 250 million-300 million pounds.
Asked about the report, a BA spokeswoman said: "It's all speculation
and rumour." Industry sources said they were sceptical that the
British carrier would consider such a move. (Reuters 07:20 AM ET)
http://airlinebiz.com/wire/06042001 (See Full Story!)
---------------------------------------------
Best wishes,
Turbsy
Taken from:
AIRJET AIRLINE WORLD NEWS -- AJN 05JUN2001 07:01 UTC
Airways - Inside the newest issue of Airways July 2001 (Issue No 65)!
http://www.AIRLINEBIZ.COM/wire/airwayspage
M O N D A Y | June 04, 2001 Edition
*** British Airways weighs Aer Lingus bid
BRITISH AIRWAYS is considering a 300 million pound ($424.1 million)
takeover bid for Ireland's national carrier Aer Lingus, Britain's
Sunday Times reported. "We are considering our options with Aer
Lingus and may be interested in purchasing a stake, however large,"
one BA executive was quoted by the newspaper as saying. "We could do
this alone or with a partner. Nothing is decided yet but something
may well happen," the executive said. The newspaper said the Irish
airline was estimated to be worth 250 million-300 million pounds.
Asked about the report, a BA spokeswoman said: "It's all speculation
and rumour." Industry sources said they were sceptical that the
British carrier would consider such a move. (Reuters 07:20 AM ET)
http://airlinebiz.com/wire/06042001 (See Full Story!)
---------------------------------------------
Best wishes,
Turbsy
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Hard to call this one..No doubt about it Lingus' slots at LHR would be very attractive to Rod. Plus EI have a very lucrative transatlantic operation now with high load factors on super efficient A330's, which are perfect for the routes and the passenger numbers that Aer Lingus fly.
What's not so good is the staff problems with regards to the unions. Any IPO or takeover would involve huge concessions to the unions. The Irish government has conceded far too much power to the unions in Ireland with the result that these unions' members will now strike at the drop of a hat. We've had Train drivers, nurses, Bus dirvers, Teachers, Toll road operatives, EI cabin staff and countless other groups striking recently. The government promised too much to push through their model for "social partnership" and now they're being nailed. The whole Michael Foley case stinks of a SIPTU set up, just look at the other thread on this topic.
I mean look at the concessions FLS had to give to TEAM employees to secure that takeover.
Another problem is the congestion at Dublin Airport, with Aer Rianta refusing to develop the airport properly despite huge profits.
Eddington may well be attracted by the LHR slots and the Transatlantic traffic but the staff will give him huge headaches, but then again he's quite fond of going to war with staff, isn't he?
I've also heard a rumour of BA going for a takeover with AA as a 50/50 partner.
What's not so good is the staff problems with regards to the unions. Any IPO or takeover would involve huge concessions to the unions. The Irish government has conceded far too much power to the unions in Ireland with the result that these unions' members will now strike at the drop of a hat. We've had Train drivers, nurses, Bus dirvers, Teachers, Toll road operatives, EI cabin staff and countless other groups striking recently. The government promised too much to push through their model for "social partnership" and now they're being nailed. The whole Michael Foley case stinks of a SIPTU set up, just look at the other thread on this topic.
I mean look at the concessions FLS had to give to TEAM employees to secure that takeover.
Another problem is the congestion at Dublin Airport, with Aer Rianta refusing to develop the airport properly despite huge profits.
Eddington may well be attracted by the LHR slots and the Transatlantic traffic but the staff will give him huge headaches, but then again he's quite fond of going to war with staff, isn't he?
I've also heard a rumour of BA going for a takeover with AA as a 50/50 partner.
Guest
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Hi there,
Couldn't agree with you more. BA will, Im sure have a long think about it. If they do decide to take it over,it probably won't happen for at least another year or two when some of the problems in Aer Lingus should be well sorted out.
All the best,
Turbsy
Couldn't agree with you more. BA will, Im sure have a long think about it. If they do decide to take it over,it probably won't happen for at least another year or two when some of the problems in Aer Lingus should be well sorted out.
All the best,
Turbsy
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Latest rumour in DUB is that Michael o'Leary of Ryanair is about to put in a (private?)bid. Then what? How about - keep the transatlantic operation going, shut down the short haul side, sell the Heathrow slots to the highest bidder and pocket a bucketful of cash. And, of course, Ryanair would have a free run in IRL/UK and IRL/Europe. Imagine SIPTU and IMPACT having to deal with MOL.
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Turbsy, there have been problems with Aer Lingus industrial relations for as long as I can remember. Don't think they will go away that easily. I think the situation the company is in will concentrate the minds of the pilots and their pay claim. Watch out, it could be Ryanair who buy it!!
