Aim to let shares ‘float’ if Ryanair stake diluted

Aer Lingus hopes to use any future dilution of Ryanair’s near 30% stakeholding to significantly boost the number of shares it has in free float.

Only a third of Aer Lingus’s shares are owned by public shareholders — with Ryanair owning 29.8%, the Government nearly 25% and Etihad Airways over 4%.

Ryanair is currently in the midst of appealing a UK Competition Commission order to lower its stake in the former State-controlled carrier to 5%; having already failed in one appeal. A ruling is expected next January.

Aer Lingus feels its share price has been hampered by the low level of shares it has in free float and, ultimately, wants to grow the percentage held by public investors to around 75%.

Meanwhile, chief executive Christoph Müller said, yesterday, the last quarter of this year will be the key time regarding the possibility of reaching a solution on the ongoing pension fund dispute which has dogged the company for the past few years.

The expert panel assembled to review the €780m deficit-lumbered Irish Aviation Superannuation Scheme, the main pension fund for Aer Lingus and Dublin Airport Authority employees, recently recommended both parties pay more into the fund. On Aer Lingus’s part, that means an extra €50m, taking its total contribution to €190m.

Mr Müller said yesterday, there is “no other solution” and this plan needs to be implemented. He added, however, the airline’s main challenge will be to persuade investors and shareholders to accept the plan.