SIPTU calls on Govt to buy back Aer Lingus shares

SIPTU is calling on the Government to buy back more shares in Aer Lingus in an effort to prevent a possible Ryanair takeover.

Ryanair announced yesterday that it had acquired more than 16% of the airline on the stock market and was offering €2.80 each for the remaining shares.

Chief executive Michael O'Leary said the deal was conditional on Ryanair's securing a majority shareholding in the national airline, but he also pointed out that this could be achieved without having to buy the Government's stake or the shares held by Aer Lingus employees

SIPTU has accused the Government of effectively presenting Ryanair with a chance to create a monopoly when it could have invested the funds Aer Lingus needed without selling off the airline.

Spokesman Mick Halpenny said last night that the Government still had it within its power to prevent a hostile takeover by buying back enough shares to block the Ryanair bid.

"The privatisation was proposed and advanced by the Government on the basis that it would improve competition," he said.

"If Ryanair were to pull this off, the complete opposite would be case. There would be a lot less competition and that would be bad for the country, bad for the consumer and bad for the workforce."