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”.

Last month, Aer Lingus announced that it intends to pay about €21.4m to shareholders via its 2012 dividend in May — subject to approval at its AGM.

“Our current dividend policy, which we announced in May 2012, is to pay a dividend for those future years in which we make a profit, provided that payment of such dividend is appropriate and prudent in the context of our financial position, strategic objectives and prospects,” the airline said.

Aer Lingus’s annual report showed that chief executive Christoph Müller’s remuneration increased from €1.24m to €1.29m last year — driven by a 6% rise in bonuses — although his basic salary remained frozen at €475,000.