Aer Lingus unions welcome rejection of Ryanair bid

Unions at Aer Lingus today welcomed management's rejection of an attempted takeover by Ryanair.

Unions at Aer Lingus today welcomed management's rejection of an attempted takeover by Ryanair.

The Central Representative Council (CRC) issued a statement this morning supporting the position also taken by the Government after Ryanair built up a stake of at least 20 per cent in Aer Lingus after it was floated on the stock market last week.

Green Party transport spokesman Eamon Ryan yesterday claimed Ryanair's stake may be as high as 25 per cent.

"The employees within Aer Lingus have made significant sacrifices over the past number of years to ensure that competition is maintained within the aviation sector, a position we wish to continue as an independent entity going forward.

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"We support the views held by the Aer Lingus trade unions that substantial competition issues are involved in the proposed takeover and these issues will need to be addressed," the CRC said.

The CRC represents all trade unions at Aer Lingus, consisting of the craft group of unions, Impact and Siptu.

Ryanair made a shock €1.4 billion bid for Aer Lingus yesterday but Minister for Transport Martin Cullen insisted the Government's shareholding of 28.3 per cent would not be diluted and therefore Aer Lingus would always be an independent company.

"The Government has stated that it will not be selling its shareholding in Aer Lingus and remains committed to maintaining a share of at least 25.1 per cent to protect the State's strategic interests.

"A 25.1 per cent share ensures that another company cannot acquire the 75 per cent threshold that is required to force de-listing," he said.

Mr Cullen also said Ryanair's proposal could jeopardise the international agreements that allow Irish carriers fly to the US.

"That Agreement requires that any airline designated by Ireland to provide transatlantic services must be majority owned and controlled by Irish nationals.

There is a serious risk that the merged entity that Ryanair envisages would not meet that requirement," Mr Cullen said.

The Irish Independent this morning reported Ryanair's chief executive Michael O'Leary, who has pioneered the low-cost model in air travel, had prepared a plan to reduce staffing at Aer Lingus cutting operating costs by €150 million.