Aer Lingus Airbus A330-202 (c/n 397) EI-DAA "St. Keeva" captured on short final to Rwy 25L at Los Angles International Airport (LAX/KLAX) on November 20, 2008.
(Photo by Michael Carter)
The lower house of the Irish Parliament, Dáil Éireann, has given the Irish government the green light to sell its stake in Aer Lingus to International Airlines Group (IAG).
On Tuesday, IAG announced that it had won Irish government support for its €1.4 billion ($1.5 billion) Aer Lingus takeover proposal, however this remained subject to the Dáil Éireann approving the general principles of the deal.
The Dáil Éireann gave its clearance on Wednesday in a move that was welcomed by IAG. However, IAG noted that the still deal hinges on other items, including agreement from 29.8% Aer Lingus shareholder Ryanair.
IAG has been courting Aer Lingus since last December, culminating in the current takeover proposal of €2.55 ($2.78) per share. To succeed, the offer—which will not be increased—must be backed by at least 90% of Aer Lingus’ shareholders, meaning Ryanair’s buy-in will be pivotal.
Aer Lingus chairman Colm Barrington said: “Aer Lingus will reap the commercial and strategic benefits of being part of the much larger and globally diverse IAG Group as a member of the oneworld alliance of 17 airlines that together carry over 500 million passengers.”
He said the sale of shares to IAG would increase growth and enhance gateway access to Europe and North America. “This in turn will lead to an increase in jobs at Aer Lingus, in support of activities and the tourism sector and, importantly, will strengthen connectivity to and from Ireland.”
Other carriers have expressed concern should the takeover of Aer Lingus be completed by IAG, parent of Iberia, Vueling and British Airways. They are worried about the loss of competition on Dublin-London LHR, the world’s second busiest market.
(Victoria Moores - ATWOnline News)
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