Ryanair takeover would be damaging

The Ryanair bid has been launched and it’s game-on. The Minister for Transport is to scrutinise the deal.

I trust the Government will consider: Who is to say that Ryanair and Michael O’Leary would not dismantle Aer Lingus and sell it off bit by bit? Ryanair has a track record of closing routes, often as a result of disagreements with a local airport or regulator. The Government should take note that this could seriously affect the profitability of another State asset — the Dublin Airport Authority.

The strategic slots at Heathrow are now used exclusively for the island of Ireland. Ryanair has 51 bases across 28 countries.

It is probable the Heathrow slots would be used by them to grow their business in other jurisdictions if such routes were scoped to be more profitable. It is not beyond the realm of possibility that Ryanair might go so far as to asset-strip them and sell them. These vital slots have proved crucial to inward investor considerations.

In recent days, the Irish Exporters Association opposed a Ryanair takeover of Aer Lingus citing concerns over the maintenance of air connectivity in terms of cargo services. To ignore this would be perilous.

Finally, 174m is a poor return for taking such a risk with our fragile economy. In the short term, this amount of money must seem attractive, given the state of the coffers and the need to fund capital expenditure. However, a longer view will prove that this deal is bad for Aer Lingus, bad for business, and bad for the Irish taxpayer.

Killian Brennan

Malahide Road

Dublin 17