From Reuters and PPRuNe:
British Airways is considering a possible takeover bid for Irish state airline Aer Lingus, BA Chief Executive Rod Eddington was quoted as saying on Sunday.
Eddington said BA would not make a move until the Irish government clarifies its plans for the airline’s future.
“But we’d certainly be an interested party,” Eddington told Ireland’s Sunday Independent newspaper, adding that he had asked bankers to work out how much such an acquisition might cost.
“Whether it would make sense for both parties to have an equity investment at some point, time will tell,” the paper cited Eddington as saying.
“My starting point is what the Irish government wants to see happen. When we know the answer to that we’ll be able to reflect on whether we’d want to participate or not.”
Earlier this month, senior management at Aer Lingus asked the government for permission to seek financial backing for a buy-out of their own.
A three-man team comprising Chief Executive Willie Walsh and his chief financial officer and chief operations officer said they were confident “an attractive proposal could be developed and financed” if government consent was forthcoming.
If the government gave the nod to that request, the airline would effectively be on the market, with a bidding process being open to other potential buyers.
BA, like other airlines, has said it wants to see further consolidation in the European industry.
Aer Lingus, which has realigned itself under former pilot Walsh as a low-fare player after a brush with bankruptcy in 2001, has long been slated for a sell-off.
It posted a stronger than expected operating profit last year of EUR83 million (USD$103.3 million), compared to an operating loss of more than EUR50 million (USD$62.3 million) in 2001.
(Airwise)
By: Ren Frew - 20th July 2004 at 01:54
Cash wouldn’t keep the politicians in power.They would be the ones responsible for selling off Aer Lingus and there would be a considerable backlash if it happened.
Agreed, Aer Lingus is an Irish insitution. They’d be better selling it to the people, making them shareholders at large. Personally I doubt this will happen and Aer Lingus will in effect become a corporate attachment of some larger airline/group.
By: The Old Man - 19th July 2004 at 22:54
Cash wouldn’t keep the politicians in power.They would be the ones responsible for selling off Aer Lingus and there would be a considerable backlash if it happened.
By: Ren Frew - 19th July 2004 at 19:53
This dela wont happen because I doubt the Irish goverment would allow it and knowing the Irish people they would riot before Aer Lingus was sold to a British airline.Dont get me wrong I love britain I have no problesm with British people I come and spot at LHR every year and I have British relatives but personally I want to see EI remain in Irish hands.
The Irish people might baulk at the idea but would the owners of Lingus, especially if there’s a few bob in it ? Politics has nowt to do with business, whereas cash does… 😮
By: SHAMROCK321 - 19th July 2004 at 19:28
This dela wont happen because I doubt the Irish goverment would allow it and knowing the Irish people they would riot before Aer Lingus was sold to a British airline.Dont get me wrong I love britain I have no problesm with British people I come and spot at LHR every year and I have British relatives but personally I want to see EI remain in Irish hands.
By: The Old Man - 19th July 2004 at 14:36
Forget the EU (and we’d all like to!) from a political point of view I just cannot see BA being allowed to take over Aer Lingus. An Irish airline being bought over by the Brits, I just cannot see the Irish public standing for it.
By: Bmused55 - 19th July 2004 at 11:24
The main point I’m trying to put across is:
With the way things look so far, it seems anything that benefits France, directly or indirectly is always approved. Anything that would not do anything for france is not.
By: Bmused55 - 19th July 2004 at 11:23
I assume there were some other facts which drove to a such decision don’t you?
Yeah, The size their wallets would be afterwards 😀
By: Hand87_5 - 19th July 2004 at 11:18
Well, fact:
BA/IB merger proposed, EU Comission disallow it
Swiss/Sabena merger proposed, Comission gives the green light
KLM/Air France Merger Proposed that has even greater implications, EU Comission gives the thumbs upGiven the fact that the people making the decisions were mainly french or french speaking (Begians for example)… I’d say its a pretty big pointer.
I assume there were some other facts which drove to a such decision don’t you?
By: Bmused55 - 19th July 2004 at 11:16
Which evidences? Do you have documents , facts , figures , reports???
Or was it just an article in the Sun?
Well, fact:
BA/IB merger proposed, EU Comission disallow it
Swiss/Sabena merger proposed, Comission gives the green light
KLM/Air France Merger Proposed that has even greater implications, EU Comission gives the thumbs up
Given the fact that the people making the decisions were mainly french or french speaking (Begians for example)… I’d say its a pretty big pointer.
It comes down to how much money they’ll make from it. For the BA/IB deal they wouldn’t have made a penny. Corruption, its everywhere :rolleyes:
By: Hand87_5 - 19th July 2004 at 11:14
Wouldn’t such a deal be subject to the UK and Irish equivalent of the monopolies and mergers commision ? Or is it an EU thing ?
Would it be such a good idea?
I suspect that BA and IE have a bunch of redundant routes and I souldn’t be that good for Irish/British customers.
By: Bmused55 - 19th July 2004 at 11:10
Wouldn’t such a deal be subject to the UK and Irish equivalent of the monopolies and mergers commision ? Or is it an EU thing ?
It’ll be under the EU comission, as both countries involved are member states. So we can kiss this idea good bye right now.
By: Hand87_5 - 19th July 2004 at 11:08
With such overwhelming evidence? Never. 😉
I like the french people, its to authorities I despise
Which evidences? Do you have documents , facts , figures , reports???
Or was it just an article in the Sun?
By: Ren Frew - 19th July 2004 at 11:03
Wouldn’t such a deal be subject to the UK and Irish equivalent of the monopolies and mergers commision ? Or is it an EU thing ?
By: Bmused55 - 19th July 2004 at 10:57
With such overwhelming evidence? Never. 😉
I like the french people, its to authorities I despise
By: Hand87_5 - 19th July 2004 at 10:38
exactly.
The BA/IB deal was not to benefit the french government, thus it was quashed. I think the same will happen to any BA/EI deal if such exists.
No surprise when you find out the majority of those involved in this anti-trust board are french or french speaking :rolleyes:
Sandy , your French paranoia seems not to be healed yet?
By: Pablo - 19th July 2004 at 09:34
No surprise when you find out the majority of those involved in this anti-trust board are french or french speaking :rolleyes:
And for that reason allowed Swissair to take over Sabena. Not that it helped much in the end… 😉
By: Bmused55 - 19th July 2004 at 09:29
exactly.
The BA/IB deal was not to benefit the french government, thus it was quashed. I think the same will happen to any BA/EI deal if such exists.
No surprise when you find out the majority of those involved in this anti-trust board are french or french speaking :rolleyes:
By: MINIDOH - 19th July 2004 at 09:18
… and stopped the BA/IB
By: Bmused55 - 18th July 2004 at 21:58
Would the anti-trust authorities aprove that?
you mean the same authorities who turned a blind eye to the KLM/Air France merger?
By: tenthije - 18th July 2004 at 21:20
Would the anti-trust authorities aprove that?
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July 18, 2004 at 8:48 pm