Aer Lingus buyout should be blocked, trade unions warn

TRADE unions and opposition parties want the proposed takeover of Aer Lingus by Ryanair blocked.

IMPACT, which represents Aer Lingus cabin crew, pilots and middle management, said an independent Aer Lingus was in the best interests of the country and accused Ryanair of having a history of “hostility to its staff and shabby treatment of its customers”.

SIPTU also said the proposed takeover was an attempt by Ryanair to remove one of its competitors.

“If they can pull it off it will enable Ryanair to take out its principal competitor on their main routes, acquire the critically valuable Heathrow slots, consolidate market dominance and dictate whatever price they like to airports, with obvious long-term adverse consequences for workers and the travelling public alike,” SIPTU’s president Jack O’Connor said.

It is unclear how the employee share ownership trust (ESOT), which owns around 12% of the airline will vote at this stage, but it is unlikely to back Ryanair.

Members of the ESOT would be in for a large windfall if they voted in favour of the takeover. Ryanair estimates that its €2.80 a share offer would value each ESOT members’ holdings at €60,000.

The Government said that it would not be selling off its stake in the company and believed that competition in the aviation market was the best solution.

Speaking at a special Dáil debate on the offer for Aer Lingus, Transport Minister Martin Cullen said: “A monopoly is bad for business, it is bad for this country, bad for the customer, bad for travelling public and it is bad for tourism interests in this country. And all of those are the reasons in the first place why this Government over the last number of years have fostered competition in the aviation sector.”

Ryanair chief executive Michael O’Leary said he was happy to have the Government and the ESOT to remain on as a significant minority shareholders in Aer Lingus if he managed to get control of the airline by buying 50.1% of the shares.

Olivia Mitchell of Fine Gael said the Government should do all it can to persuade the European Commission that the takeover is not in Ireland’s interest.

“No one wants to go back to the darks days of a single major airline,” she said.

Socialist Party TD Joe Higgins said the Government should take Aer Lingus back into State ownership.