Ryanair open to talks with Etihad for its Aer Lingus stake

Ryanair said it would be willing to talk to Eithad Airways about selling its majority stake in Aer Lingus if the Abu Dhabi carrier pushes ahead with its bid to buy the Irish government’s stake in the national carrier.

The Irish government is reportedly in discussions to sell its 25 percent stake in Aer Lingus to Etihad Airways. In the event the deal is given the green light, a Ryanair spokesperson said the low-cost carrier would be willing to speak to the Abu Dhabi carrier to sell its majority share of 29.8 percent.

“[Ryanair] will enter negotiations with anyone that purchases the government’s stake in Aer Lingus,” a spokesperson told Arabian Business. “Beyond that we don’t comment on or enter into rumour or speculation.”

However, Andrew Macfarlane, Aer Lingus’ chief financial officer cast doubt on whether Ryanair would accept any offer to sell its stake.

“I'm not sure Ryanair will sell. They have been a bit inconsistent. We would prefer it if they are not on our register. It is not really appropriate to have your largest competitor as your largest shareholder," Macfarlane told the CFO World website.



Earlier this month, Aer Lingus announced an operating profit of €49.1 million (US$65m) for 2011, a six percent decrease on 2010.

The Irish government has suggested combining its share with Ryanair’s and offering buyers a majority stake. However, this would present a problem for Etihad as foreign airlines are not allowed to own majority stakes in EU carriers.

“I can’t simply understand why non-EU airlines can’t own a majority stake. After all, you can’t steal an airline,” Christoph Mueller, Aer Lingus’ chief executive, told the Financial Times newspaper in an interview in November.

http://www.independent.ie/business/irish/aer-lingus-will-be-broken-up-if-etihad-buys-government-stake-3096840.html

RYANAIR boss Michael O'Leary said yesterday that Aer Lingus will be "broken up" if Etihad or a financial investor buys the Government's 25.1pc stake in the former state-owned airline.

But the Ryanair chief executive also said that the low-cost carrier "would welcome" any other financially strong airline or investor that acquires the Government's stake. He said Ryanair, which owns just under 30pc of Aer Lingus, could work with the buyer "to restore shareholder value" at its rival.

Mr O'Leary was responding to Etihad's confirmation that it has bought a 2.9pc stake in Aer Lingus in recent weeks.

http://www.independent.ie/business/aer-linguss-big-brother-3100896.html

An Etihad tie-up with Aer Lingus might also suit Ryanair. The last thing Michael O'Leary wants is one of his major European rivals, such as Willie Walsh's IAG, getting behind the controls at Aer Lingus.

Far better to allow a non-EU airline, such as Etihad, to assume the role of Aer Lingus' big brother instead.

Even better, as Etihad is prohibited from acquiring Aer Lingus outright, Ryanair gets to keep its blocking 29.8pc stake.

INDEED Mr Hogan, whose forebears come from Co Tipperary and who visits this country regularly, has met Mr O'Leary on some of his previous Irish trips. Could the two men come to a mutually-beneficial accommodation on Aer Lingus? Stranger things have happened.