Ruling to free up airline’s dividend

Aer Lingus has welcomed a High Court ruling allowing it to increase the amount of its financial reserves that can be distributed to shareholders.

The ruling effectively means trustees of the airline’s employee pension scheme — which is in deficit — won’t be able to limit the amount of dividends paid to shareholders.

Aer Lingus management said the ruling is in “the best interests” of shareholders, “as it enables the company to have greater flexibility to consider a return of capital, or the redemption or repurchase of shares, in excess of the limits previously imposed by the company’s balance sheet”.