RYANAIR CHIEF executive Michael O'Leary has said he would seek to establish Aer Lingus bases in the UK and Europe in a move to expand the business rapidly over the next few years, if he is successful in acquiring his rival airline.
Ryanair has said it would add 33 aircraft to Aer Lingus's fleet and increase job numbers at its rival by 1,000 if its €748 million bid is successful.
At a press conference in Dublin yesterday, Mr O'Leary said Aer Lingus could establish bases in such cities as Manchester and Copenhagen and at Gatwick in London, airports where Ryanair would never set up a base.
"This isn't just about Shannon, Cork or Dublin," he said.
"I would be much more interested to get Aer Lingus to develop new bases in the UK or Europe."
Aer Lingus currently only operates bases out of Ireland - at Dublin, Cork and Belfast, which was established almost a year ago.
Mr O'Leary was critical of Aer Lingus's load factors from Belfast, which average just 57 per cent across 10 routes, according to figures he produced yesterday.
He said Aer Lingus was "losing money hand over fist" in Belfast at present, but added that he had an open mind on the question of whether Aer Lingus should continue to operate from there.
"If they think they can get the load factors up and make them profitable then we will support them," he said.
Mr O'Leary indicated yesterday that he would recognise trade unions at Aer Lingus, a major concession given that Ryanair has a reputation for being anti-union. He added that workers' terms and conditions would not necessarily be reduced.
Mr O'Leary also said Aer Lingus staff would continue to be directly employed by the airline. A large number of Ryanair employees are employed through agencies.
This cut little ice with Siptu general president Jack O'Connor. "That attitude would last for a full 60 seconds before they'd change it," he told The Irish Times.
"Their attitude to workers is demonstrated by their high turnover of employees here."
The share prices of Aer Lingus and Ryanair experienced different fortunes in trading on the Irish Stock Exchange yesterday.
Aer Lingus's share price rose by more than 14 per cent to €1.28, but Ryanair's declined by 2 per cent to €2.87 as some investors saw its offer as a risky strategy at a time when consumer demand is falling.
"Investing in airlines is always risky," Mr O'Leary said. "We are growing very rapidly and are almost in an impregnable position," before adding that Ryanair would double its passenger numbers to 100 million over the next five years.
Mr O'Leary declined to say what percentage chance he had of succeeding with his €1.40 a share bid, but said he was confident that it could succeed.
"The chances [of succeeding] this time round are markedly different," he said.
"A lot of the surprise and emotion has gone out of it and the pressures on Government are different. All we ask is that they look at our offer, study the offer and consider it seriously."
