O’Leary: ‘€40m wiped off airline’s pension fund’

RYANAIR has told Aer Lingus staff the Government’s shareholding in the company has taken €40 million from their pension fund.

This was in response to a controversial briefing document from Fianna Fáil that said the Government’s standoff position on the removal of Shannon’s Heathrow slots had protected the airline’s share price.

Ryanair chief executive Michael O’Leary said this logic was not consistent with the Government’s successful attempt to block his proposed buyout of Aer Lingus.

Mr O’Leary said the Government’s stance on Aer Lingus had hampered investment in the company since its floatation.

“The Government opposed Ryanair’s offer for Aer Lingus last October, which valued the airline at €€2.80 a share or €€1.49bn, with the result that today Aer Lingus’s value has fallen to €€2.45 per share or just €€1.29bn.

“Bertie Ahern’s Government has seen €€200m wiped off the value of Aer Lingus’s shares and the profitable Shannon-Heathrow route unnecessarily closed.

“The Government has lost over €€50m, Aer Lingus’s staff and pension funds have lost over €€40m, Aer Lingus’s passengers are paying over €€100m extra in higher fares and fuel surcharges, and now Shannon may lose its Heathrow services,” said Mr O’Leary.

Yesterday, neither the Government nor the Department of Transport would comment.

Ryanair had its efforts to take over Aer Lingus blocked by the European Commission, in response to an appeal by the Government and it has referred the case to the European Court of First Instance.

The controversial briefing document, distributed from Fianna Fáil head office, also failed to soothe tensions within the party. Councillors and deputies in the west described it as “spin”.

Leader of Clare’s Fianna Fáil councillors PJ Kelly said the two-page document “could have been issued by the PR department at Aer Lingus”.

“It is a silly document, designed to take our eye off the ball in relation to the Shannon issue but which failed abysmally.

“Fianna Fáil councillors from Kerry to Donegal have joined us and we have already had a preliminary meeting and we plan to meet again in Oranmore on September 6.

“What an Taoiseach has to face now is not alone the Shannon issue but also a totally new list of west/ mid-west issues which were not addressed in the past,” said Mr Kelly.

The Fianna Fáil press office said the document was not designed for spin purposes but to clarify issues at the centre of the debate.

“It was a document that was prepared to provide informative guidelines for those in the area affected by Shannon Airport, primarily along the west coast,” a spokesman said.

He added the party hoped the feuding members could soon arrive at common ground.

“We hope that those misgivings can be soothed over the coming weeks and anyone who has concerns will be satisfied with what happens,” he said.