BA may seek Aer Lingus takeover

BRITISH Airways is mulling a possible takeover bid for Irish state airline Aer Lingus, BA’s chief executive officer has been quoted as saying.

Rod Eddington said BA would not make a move until the Irish Government clarified its plans for the airline’s future.

“But we’d certainly be an interested party,” Mr Eddington told a Sunday newspaper, adding that he had asked bankers to work out how much any such buy-out might cost.

“Whether it would make sense for both parties to have an equity investment at some point, time will tell,” the paper quoted Mr Eddington as saying.

“My starting point is what the Irish Government want 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, chief financial officer Brian Dunne and chief operations officer Seamus Kearney said they were confident “an attractive proposal could be developed and financed” if government consent was forthcoming.

If that happens, the airline will effectively be on the market, with a bidding process open to other buyers.

BA, like other airlines, has said it wants to see further consolidation in the European industry.

Aer Lingus, which has realigned itself as a low-fare player after a brush with bankruptcy in 2001, has long been slated for sell-off.

It posted a stronger-than-expected operating profit last year of €83 million compared to an operating loss of over €50 million in 2001.