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Aer Lingus' leap in losses could usher in Ryanair
Evening Standard 27 Aug 2009The crisis at Aer Lingus could yet see the Irish flag carrier end up in the hands of Ryanair.
Aer Lingus today reported half-year losses soaring to €93 million (£82 million) and said its new chief executive Christoph Mueller, who starts next week, will reveal plans of a major strategic review in the autumn.
According to corporate affairs chief Enda Corneille: "Nothing is ruled out." That could mean a merger with Irish arch-rival Ryanair.
Twice in the past three years since the privatisation of Aer Lingus, Ryanair has tabled abortive hostile takeover bids, building up a 29% stake in the process.
Twice its moves have been blocked by the Irish government and European Union officials who fear a lack of competition in the Irish republic.
Mueller is joining Aer Lingus from the German-owned Thomson holidays group Tui.
Asked if Mueller might reconsider a merger with Ryanair, Corneille said: "That is a matter for the chief executive and shareholders."
Corneille signalled that if Aer Lingus is to stay independent it will mean jobs carnage for the carrier's beleaguered 4000 staff.
The cost of such a relatively large workforce has helped send half-year losses soaring from €23 million last time.
Average fares have slumped 17% at Aer Lingus as it desperately attempts to compete on price with the likes of Ryanair and easyJet.
Reader views (3)
It probably makes sense if Aer Lingus were to merge with British Airways. They already cooperate in many routes between the two countries and many Irish persons use LHR as their gateway to the world. Ryanair, given that it is el cheapo airline, would destroy the brand.
- Ml, Washington, DC, USA, 01/09/2009 02:15
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Oh god not Ryanair anything but that, some of us have to travel with bags.
- Roger, Chichester UK, 27/08/2009 22:00
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Can you explain how something can plunge by 250%? The maximum anything can "plunge" by is 100%.
- Jb, London, 27/08/2009 13:36
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