Aer Lingus seeks to cut reserves

AER LINGUS said yesterday it will ask shareholders to allow it reduce its non-distributable reserves by up to €500 million and give it greater flexibility to consider paying dividends in the future.

Aer Lingus, which has not made any dividend payment or other form of distribution to shareholders since its initial public offering in 2006, said in a circular to shareholders it was not contemplating any such payments.

However, it will seek the changes as its structure prohibits dividend payments owing to accumulated realised losses being four times the €57m in retained earnings earmarked for possible shareholder distribution.