Ryanair to complain over ‘false claims’

AER Lingus said there are no questions over its survival as its largest stakeholder, Ryanair said it is launching formal complaints against the airline.

As the latest head to head between the two airlines kicked off, Aer Lingus chief executive Dermot Mannion shrugged off plans by Ryanair to launch the complaints to the London and Irish stock exchanges, the Takeover Panel and the Financial Services Regulator.

The complaints concern what Ryanair called “patently false claims and misleading advice” it said were given by Aer Lingus to shareholders in its December defence document published as a result of Ryanair’s takeover bid.

Aer Lingus based its defence strategy on the argument that it had a profitable future as an independent airline.

However it said yesterday that it may not post a pretax profit this year.

“In the current climate we believe that in 2009 Aer Lingus will experience a larger operating loss than in 2008 and that in these circumstances the group is unlikely to meet its previous guidance of a pre-tax profit in 2009,” it said.

Ryanair’s chief executive, Michael O’Leary, said: “It would appear that the board and management of Aer Lingus care more about lining their own pockets with excessive and unjustified director fees and multi-million euro resignation bonuses for failed management than they do about growing Aer Lingus, delivering profitability or shareholder value.”

However Mr Mannion said nobody can predict “with any level of certainty how long this downturn is going to take”.

“I think we all know that since the start of the year there has been a further sharp deterioration in the operating environment and that is reflected now in our revised forecasts for 2009,” said Mr Mannion.

He added that following two failed takeover bids by Ryanair it simply “doesn’t make sense for them to continue as shareholders”.

He also said he believes there will be investors interested in buying Ryanair’s shares on the market.