Taking a closer look at the bid for Aer Lingus

What is in the best interest of the consumer? He/she may be worse off, depending on what happens to slots at Heathrow and Gatwick.

To date, British Airways has chosen not to develop long-haul routes out of Birmingham, Manchester, Glasgow and Edinburgh, unlike Continental United Air Lines, which has done so to the USA.

What is in the best interest of Aer Lingus executives?

As reported, they are in for a €15m pay-off.

What is in the best interest of the shareholders?

The other airline share-holder will be able to exit Aer Lingus at a price that will largely see a neutral return on their investment. If there is no sale to British Airways IAG, and they are forced by the UK Competition Authority to reduce their share-holding, then there would be a significant loss on their investment.

However, their investment in Aer Lingus has been as much for reasons other than financial.

And the possible Irish government response to the takeover?

Agree the sale and lose any control over Aer Lingus slots at Heathrow and Gatwick? Refuse the sale and let Aer Lingus continue as is.

If it wasn’t for the forthcoming election, I would suggest that an Irish government of any persuasion should sell Aer Lingus to British Airways IAG.

And what’s in the best interest of Aer Lingus?

The airline industry has high and lows, and currently aviation fuel is selling for a significantly low price. Aer Lingus cash reserves are in a healthy state.

There has been a steady development of routes. The IASS pension issue has been addressed, unless you are a former employee with a deferred pension.

So, if it is a choice of Aer Lingus being purchased by some other airline group from the Middle East or USA, I believe British Airways IAG would be the best of those options.

And the best interest of Aer Lingus staff?

If you are currently employed by Aer Lingus at Shannon or Cork, then I wouldn’t by very optimistic about your future prospects.

The proposed takeover is only about slots at Heathrow and Gatwick.

In summation, it’s all about slots and when they are gone, they are gone.

Aidan Dolan

Former Trade Union Representative Aer Lingus Swissport for TGWU

Elected Aer Lingus Board 1994 1998

Re-elected Aer Lingus Board 1998 November 1999

150 Blackamoor Lane

Maidenhead Berkshire

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