ONE MORE THING:AER LINGUS'S investor day in London this week was high on drama if a little short of new insights.
A frosty exchange between Aer Lingus chief executive Christoph Mueller and Ryanair deputy CEO Howard Millar (right) brought an edge to proceedings.
There was essentially nothing new in what Millar said about the leave and return redundancy scheme, about shareholder value being destroyed in recent years and about the pension deficit that hangs over Aer Lingus.
Ryanair has made these points before.
The sizzle was provided by Millar’s claim that Aer Lingus was involved in a “cover-up” on the leave and return scheme by not releasing the findings of a review to shareholders.
He dubbed it Aerlingusgate, which might be stretching it. It’s hard to see Ryanair backing off and so this matter is likely to fester for some time to come.
Mueller used the meeting to reiterate management’s view that the airline could have an independent future, although it would welcome the sale of the stakes held by the Government and Ryanair.
He said Aer Lingus would be in the market to buy Heathrow slots if they became available. BMI last week sold six Heathrow pair slots to British Airways.
“We remain strongly interested in [Heathrow] slots,” he said.
Ironically, it is Aer Lingus’s 23 Heathrow slots that most analysts highlight as being attractive to potential acquirers.
This is especially so as Heathrow’s capacity has effectively been capped by the British government.
Mueller provided one nugget that might inform the thoughts of a future buyer.
While Aer Lingus feeds into the hubs of British Airways, Air France KLM and United, its most lucrative long-haul “feeder” deal is actually with Virgin Atlantic, which itself has been on the block.
