Ryanair plans for long-haul flights on hold

RYANAIR’S chief financial officer has said plans for the airline to operate long-haul flights is on hold for the moment but it could use a takeover of Aer Lingus for such an expansion.

Echoing comments by the airline’s chief executive Michael O’Leary last week, Howard Millar said the likelihood of Ryanair taking over Aer Lingus was significantly increased considering what is going on in Europe.

Ryanair is unlikely to table a fresh bid for Aer Lingus until the European Court of First Instance returns its verdict on Ryanair’s appeal of the blocking of its original €1.48 billion bid, which could come any time in the next 12 months.

It was confirmed under-pressure Italian airline Alitalia’s operating licence could be removed this week unless it presents a cost-cutting rescue plan.

However, despite Ryanair last week confirming it would barely break even financially this year, the airline still believes a takeover of Aer Lingus is on the cards.

“We think the likelihood of Ryanair taking over Aer Lingus is now significantly increased considering what is going on across Europe,” said Mr Millar.

He told Airline Business magazine that Ryanair, which has built up to a 29.82% stake in Aer Lingus to be the single largest shareholder, would restructure its rival to lower its cost base but keep the brand separate and the network “pretty much in the same shape”.

He then confirmed that Ryanair’s own long-haul ambitions were on hold because fuel is too expensive as is the price of aircraft.

But he said any new venture would also not be done by Ryanair itself but in a new company to operate the longer-haul routes. If Aer Lingus is taken over it could be the vehicle for that move, said Mr Millar.

Meanwhile, it could be up to two weeks before Aer Lingus workers finally find out if their jobs are to be outsourced.

Last Friday the airline’s chief executive Dermot Mannion, in a letter to SIPTU president Jack O’Connor, refused to rule out wholesale job outsourcing at the airline in the wake of projection of losses of €100 million this year.

The outsourcing could affect up to 1,500 groundcrew jobs according to the speculation which Mr Mannion has refused to discount.

The airline employs just under 1,700 SIPTU ground crew members in Dublin, 200 in Shannon and 90 in Cork.