EU to give blessing to Aer Lingus deal as Ryanair says Yes
THE takeover of Aer Lingus by British Airways owner IAG looks more certain after the European Union’s competition chief signalled she favoured the deal.
The indication from Competition Commissioner Margrethe Vestager came on the day Ryanair announced its board had agreed to sell its 29.8 per cent shareholding in Aer Lingus to IAG.
In a letter to Fine Gael MEP Brian Hayes, Ms Vestager indicated the conditions are in place for the European Commission to approve the deal and not to oppose i t on competition grounds.
She said: ‘I would like to highlight that the commission is generally in favour of consolidation of the air transport industry in Europe,’ she said.
‘My job is to ensure that such consolidation does not take place at the expense of consumers and companies needing air transport services at affordable prices and quality.’
Mr Hayes said hers was a positive response and said he believed the way was now clear for the merger to go ahead. He said: ‘I am confident the agreement that has been reached will benefit consumers, will enhance Ireland’s connectivity and boost job opportunities.
‘Commissioner Vestager has acknowledged the guarantees regarding slots and will assess this issue closely.
‘The guarantees that are in place mean that Aer Lingus’ existing slots will be maintained and schedules between Ireland and Heathrow will be retained for a set period of time.’
Paschal Donohoe has welcomed Ryanair’s decision to sell its 29.8 per cent stake and said the Government – which owns a quarter of Aer Lingus – was now awaiting a formal decision on the competition concerns from the European Commission.
The Transport Minister said: ‘The Government have made their decision and have always been very clear that the best fit for Aer Lingus, and the best way for them to grow access and jobs into our country into the future, was as part of the IAG Group. That’s why we made the decision to accept the offer from IAG.
‘ I’ve never commented on what other shareholders are going to do because it’s a matter for them but I do welcome the decision Ryanair have made today.
‘It’s a very important development for the future of Aer Lingus and it’s an important decision that has been made that points to an even more secure future for Aer Lingus, and also is another important development in the extraordinary progress that Ryanair are making in becoming such a success in European and Irish aviation.
‘We await what the European Commission will decide in relation to how they will look at competition in and out of the UK and Ireland and how they will look to make sure an environment is in place for the best thing for the passenger.
‘I believe those decisions are imminent and I will comment when they are made and when they are published.’
Ryanair’s Michael O’Leary gave the deal his seal of approval last night and wishes IAG well.
‘We believe the IAG offer for Aer Lingus is a reasonable one in the current market and we plan to accept it, in the best interests of Ryanair shareholders,’ said Mr O’Leary.
Ryanair had tried to buy Aer
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Lingus but was rebuffed by EC competition chiefs.
‘The price means Ryanair will make a small profit on its investment in Aer Lingus over the past nine years.
‘This sale of our stake is timely given that our original strategy for Aer Lingus – to use it as a mid-priced brand to offer competition to flag carriers at primary airports – has been overtaken by the successful rollout – since September 2013 – of Ryanair’s “Always Getting Better” strategy.’