British Airways’ owner gets go ahead to buy Aer Lingus
British Airways’ owner, IAG, has been given the go ahead to buy Aer Lingus after the Irish government agreed to sell its 25% stake.
After months of negotiations, the company, which also owns Iberia and Vueling, made an offer valuing the airline at €2.55-a-share.
The decision was made at a meeting of the Irish cabinet yesterday, following indications the same day from Brussels that European competition authorities would not object.
As part of the deal, Aer Lingus will continue to operate under the Aer Lingus brand and keep its head office in Dublin as well as its existing slots at Heathrow airport.
The number of flights between London Heathrow and Dublin, Cork and Shannon will also be maintained for at least seven years.
Mr Walsh said the acquisition could lead to increased capacity and four additional destinations in North America by 2020.
Willie Walsh, CEO of IAG said: "Aer Lingus, Ireland and IAG would all benefit from this deal. Aer Lingus would maintain control of its brand and operation while gaining strength as part of a profitable and sustainable airline group in an industry that’s consolidating.
"Ireland’s vital air links to Europe and North America would be enhanced, creating new jobs, with cast-iron guarantees on ownership of Aer Lingus’ Heathrow slots and their use on flights to Dublin, Cork and Shannon.
"Acquiring Aer Lingus would add a fourth competitive, cost effective airline to IAG, enabling us to develop our network using Dublin as a hub between the UK, continental Europe and North America, generating additional financial value for our shareholders."
Mr Walsh started his career at Aer Lingus as a pilot cadet, working his way through the airline to chief executive in 2001.
Paschal Donohoe, Ireland’s minister for transport, tourism and sport, said 635 new Aer Lingus jobs could be created under the ownership of IAG, with two new transatlantic services scheduled to launch next year.
Diane
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