Ryanair launches bid for Aer Lingus
Ryanair has launched a €1.48bn bid to buy Aer Lingus.
The low-cost airline said it had bought a 16% stake in Aer Lingus and was offering €2.80 per share for remaining stocks.
Earlier this week, Aer Lingus shares were floated on the stock market in London and Dublin after the Irish government decided to sell more than 50% of its 85.1% share in the company, with staff holding on to a 15% stake.
Shares began trading at €2.20 each, giving the firm a value of €1.13bn.
Chief Michael O’Leary said if the bid was successful the two airlines would continue to compete and operate as separate entities on the 17 routes they both operate on.
Altogether, around 500 routes are operated by the two airlines.
“This offer represents a unique opportunity to form one strong airline group for Ireland and for European consumers,” he said.
“We will expand, enhance and upgrade the Aer Lingus operations.”
He also said that Aer Lingus would be able to cut its short-haul fares and its fuel surcharge.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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