Ryanair plans to close Aer Lingus base at Gatwick if takeover bid succeeds

Sunday, 05 Oct, 2012 0

Ryanair will shut Aer Lingus bases at Gatwick and Belfast and open a new base in Brussels to serve non-Irish routes if its bid to take control of the Irish carrier is approved by the European Commission, it revealed yesterday.

The airline is hoping its plans will allay fears within the EU that approving Ryanair’s £560m bid for Aer Lingus will create a near monopoly in the domestic market.

Ryanair, which already owns 30% of Aer Lingus, has offered €1.30 per share for the remaining stock, well above the trading price of the shares. Its earlier attempt to buy Aer Lingus, in 2007, was rejected.

In a further bid to push through the latest deal, Ryanair has said it will submit a "remedies package" to the EU that will include commitments by rival airlines to operate some of the 36 routes on which it and Aer Lingus have no competitors.

"The way we can get across the line is by cutting a certain number of Aer Lingus routes, cutting a certain amount of Ryanair routes and then maybe refocus Aer Lingus," said Ryanair spokesman Stephen McNamara.

He said Aer Lingus had spoken to about 10 airlines and charter operators, including British Airways, Virgin Atlantic and French-owned CityJet about taking over routes. "I’m not sure of the 10 if they have all said they would be interested, but there is certainly enough interest to form the remedies package," said McNamara.

If Ryanair’s takeover bid is approved, it will maintain the Aer Lingus name but cut its average fare from €85 to €65, positioning it higher than Ryanair’s at €45, and offer discounted off-peak fares to the US.
 



 

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Linsey McNeill

Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk



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