O’Leary forces Government showdown

RYANAIR boss Michael O’Leary has forced the Government into a showdown meeting on the future of Shannon’s Heathrow service.

Yesterday, Mr O’Leary used Ryanair’s 25% stake in Aer Lingus to call shareholders to a vote at an extraordinary general meeting (EGM), which must be held within the next three weeks.

If the vote goes ahead, the Government, as the largest shareholder, will have the power to decide if the Heathrow slots should remain at Shannon.

At a press conference in Shannon he outlined plans for an alliance with the Employees Share Ownership Trust (ESOT) and the Government to make the Aer Lingus board reverse its decision.

“It will force the Government to come out of hiding and decide do they want Shannon to be saved or do they want to abandon Shannon.

“We are giving them [the Government] the opportunity to keep their word on the Heathrow slots... Bertie cannot keep hiding in his hotel for the next six or eight weeks,” he said.

He expects the Government will use its vote to block the transfer of Shannon’s four Heathrow slots.

“I do not see how Willie O’Dea could drive back into Limerick if the Government did not vote in favour of the motion,” he said.

The Ryanair CEO denied he was acting maliciously and in a tongue-in-cheek remark said he was only interested in coming to the aid of people in the mid-west.

Mr O’Leary said the most astute business plan for Aer Lingus would be to retain its Shannon flights and serve Belfast with Gatwick connections.

“As a shareholder I believe to walk away from Shannon is bloody madness. If Aer Lingus left we would make more out of our London flights here but as a shareholder we would also make money out of Aer Lingus profits at Shannon,” he said.

Ryanair said it is prepared to help restore the Shannon link or abstain from voting if the Government wants to avoid aligning itself with the low-cost carrier.

“We understand Bertie Ahern would not want to be seen to vote with Ryanair. So if they take up our offer to abstain they can vote to save the Shannon to Heathrow route all on their own-ee-oh [sic],” he said.

He threatened the Government with legal action if it did not vote and acted in a way that was oppressive to minority shareholders.

“The law is a wonderful thing,” said Mr O’Leary.

Speaking on radio, Dermot Mannion said he had not received notice of the EGM request yet but could not control the outcome of any meeting.

“That is a matter for the shareholders, Ryanair, the employees trust and the Government in the event of any EGM taking place,” he said.

ESOT will meet later today to formalise its position on Ryanair’s motions although it indicated it supports efforts to restore the Shannon flights.

Last night, junior minister Tony Killeen said there was a legal question mark over the potential validity of Ryanair’s proposed vote and he is having this examined.

However, he welcomed the calling of the EGM and called on the board of Aer Lingus to use the occasion to announce the restoration of flights to the mid-west airport.

He said it will force Aer Lingus to explain its case for the move.

The Ryanair chief executive said Mr Mannion was within his rights not to seek shareholders’ approval before announcing the move to Belfast.