Ryanair ups stake in rival

Aug 22 2007 by Alistair Houghton, Liverpool Daily Post

LIVERPOOL’S biggest airline Ryanair has bought another 4% of Irish rival Aer Lingus.

Earlier this year the low-fares airline, which flies to around 40 des- tinations from Liverpool, launched a takeover bid for Aer Lingus.

Ryanair has now confirmed it has bought another 4% of Aer Lingus. Its stake in its rival is now 29.4%.

But the company did not mention its takeover bid when announcing its latest deal and instead suggested its move could help shareholders block controversial plans by Aer Lingus to axe its Shannon to Heathrow route and create a new hub in Belfast.

Ryanair said: “These new shares were acquired at or less than 2.45 euros per share, which lowers the average cost of Ryanair's shares in Aer Lingus.”

Ryanair’s takeover bid for Aer Lingus was blocked by the European Commission in June, but it is appealing against the decision.

Aer Lingus’s decision two weeks ago to scrap its Shannon routes in favour of Belfast ones has sparked a storm of protest in Ireland, and a strike was narrowly averted this week.

A 48-hour stoppage by 500 pilots was due to start in the early hours of yesterday morning, but instead unions and management began new negotiations on pay and conditions for pilots to be employed at the airline’s new Belfast base.

Business and tourism leaders in the west of Ireland fear the loss of the Heathrow link could cost the area’s economy millions of euros.

A group of civil servants from several government departments will now assess the impact of the cuts at Shannon Airport and the local economy, and look at the options for air links out of the region.

alistairhoughton