Aer Lingus and Ryanair: a risky game of monopoly

HISTORY repeating itself — the second time as farce.

Sat, 07 Oct, 2006 - 01:00

First we had Telecom Éireann, a State monopoly privatised and transformed into a private monopoly, with the resulting shambles of a telephone service.

Now it emerges that Ryanair is on the verge of acquiring a majority shareholding in the recently-privatised Aer Lingus, creating the potential for a private monopoly of air travel within and out of Ireland.

In addition, there is the grave danger of asset-stripping. Aer Lingus could be forced to relinquish landing slots in major airports such as Heathrow.

It has shattered Government illusions about creating competition.

An important public asset, which has been the recipient of hundreds of millions of taxpayers’ money over many decades, is now on Michael O’Leary’s butcher block.

It is clear that workers and their trade unions in industries facing privatisation need to face up to and seriously challenge the whole thrust of the Government’s privatisation strategy — a strategy aimed at further enriching the ‘golden circle’ by creating State welfare for big business.

History is repeating itself as farce in relation to privatisation.

Eugene McCartan

General Secretary Communist Party of Ireland

7 Bloom Lane

Lr Ormond Quay

Dublin

IF Ryanair’s brazen attempt to take over Aer Lingus succeeds, it will be a dark day for the Irish aviation business, for Aer Lingus workers and for airline passengers.

If the Government won’t intervene, then it will be left to the Aer Lingus workers themselves to resist the takeover because their unions, SIPTU and IMPACT, will do nothing, just as they did nothing to stop privatisation in the first place.

In fact, IMPACT supported the national airline’s privatisation.

Apart from Aer Lingus workers, this takeover would also be very bad for passengers as it would give Ryanair a virtual monopoly of the business.

Ironic, to say the least, for a company that used to scream so loudly about lack of competition.

Paul Kinsella

53 Lorcan Grove

Santry

Dublin 9