Ryanair to pursue Aer Lingus

Ryanair said it will pursue Aer Lingus directors for a breach of company law if the former state carrier refuses again to hold an extraordinary general meeting.
Ryanair, Aer Lingus's largest shareholder with a near 30 percent stake, said on Thursday it had the right to request a meeting at which it wanted to discuss Aer Lingus's 400 million euros (343 million pounds) pension deficit and a tax settlement.

Aer Lingus, which has consistently rejected the call for an EGM, said last week the requisition to hold a meeting was not properly made, and Ryanair was using its shareholding simply to harass a competitor.

Ryanair, a thorn in its fellow carrier's side for years with constant criticism of its management and performance, said Aer Lingus did not have discretion in the matter.

"Please be advised that should your board again refuse to convene this properly requisitioned EGM, then Ryanair will pursue the directors of Aer Lingus for this breach of Irish company law and the listing rules of the Irish Stock Exchange," Ryanair said in a November 18 letter addressed to Aer Lingus and released on Thursday.

While Ireland is considering selling its 25 percent stake in Aer Lingus as part of a wider sale of state assets under an EU-IMF bailout, the airline's pension deficit, larger than its 380 million euros market value, is a major stumbling block.

Ryanair, which has said it would consider selling its Aer Lingus stake to whoever buys the government's holding, wants the airline's board to confirm it has no obligation to make any additional payment to its pension scheme.

Aer Lingus said in August it had no obligation to fund the pension deficit, adding its position could be open to legal challenge.