Ryanair would consider Aer Lingus takeover

Ryanair may be willing to purchase the Government's stake in Aer Lingus in the event of a sell-off, a spokesman for the airline confirmed today.

The statement came after Transport Minister Leo Varadkar said that he believed that there is no longer a strategic case for the Government holding a 25% stake in the national airline.

Ryanair spokesman Stephen McNamara said: “We previously said that the Government would eventually sell Aer Lingus. Obviously we would be open to talking to them if they were to sell.

“Ryanair does not comment on rumour or speculation, but does not believe that the Government will dispose of its 25% stake in Aer Lingus.''

In the clearest indication yet that the State’s quarter share will be sold, Minister Varadkar said the Cabinet would decide whether airport assets would be put on the market.

The Minister confirmed the focus of a review on the sale of State assets in his department had been on aviation rather than the domestic transport sector.

“No formal decision is made yet,” he said.

“What I can say is that Aer Lingus stake was held for strategic reasons and having studied the matter over the summer I don’t think that really stands anymore.”

Economist Colm McCarthy recommended disposal of the stake in his report into the possible sale of state assets in April. Mr Varadkar revealed several months ago a sell-off was being considered.

Ryanair owns 29.4% of the company – just shy of the level which prompts an automatic takeover bid under company law. The budget carrier has already had two audacious bids rejected.

One major concern over a takeover was that the Aer Lingus brand could lose its valuable landing slots in London’s Heathrow Airport and the State would miss a key tourism and business link to the British capital.

Mr Varadkar told Newstalk radio: “We have a 25% stake. You actually need 30% to block any changes on slots – more and more people are using other connections other than Heathrow.”

On the sell-off of airport assets, the minister said it would be decided by the Cabinet but any deal is complicated by debts in Dublin Airport Authority.