18 December 2008

Aer Lingus Employees Support Airline's Independence

The staff at Aer Lingus do support the airline remaining independent despite the 750 million euro ($995 million) takeover bid by rival Ryanair, Chief Executive Dermot Mannion said on Sunday. Aer Lingus' board has rejected Ryanair's all-cash bid of 1.40 euros a share, saying it significantly undervalued the airline.

Europe's biggest budget carrier, which already has a near 30 percent shareholding in Aer Lingus, has tried to appeal directly to the government and employees, holders of more than 25 percent and 14 percent of the former state carrier.

"I have had tremendous messages of support from staff right across the organisation -- all of whom are hugely positive about this notion of continuing the path of Aer Lingus as an independent organisation going forward," Mannion told public broadcaster RTE on Sunday.

The Sunday Independent newspaper quoted Irish billionaire Denis O'Brien, who has over a 2 percent stake in Aer Lingus, as telling an investment forum last week that he opposed any Ryanair effort to take over its rival.

Mannion said it was talking to all of its shareholders and met with the government last week, adding that the state would make its decision "in its own good time". "Once we receive the formal offer from Ryanair, it may come some time this week, we will then respond with a document. It is called a defence document," Mannion said.

"It will be a very positive, affirmative document that will set out an independent strategy for long-term growth on shorthaul and on longhaul in the business. That I believe is what all of stakeholders want to see and want to hear."

Aer Lingus Chairman Colm Barrington was quoted in a newspaper interview on Friday as saying he would seek a friendly investor to take a majority stake in the airline. Mannion said in response on Sunday: "The Aer Lingus business is not for sale. We have set out an independent strategy going forward and we are going to stick to just that."