Aer Lingus 'will lobby on EGM vote'

Aer Lingus directors are to ask the government to vote in favour of ending the airline's Shannon-Heathrow route when shareholders…

Aer Lingus directors are to ask the government to vote in favour of ending the airline's Shannon-Heathrow route when shareholders meet to decide the issue at an extraordinary general meeting, reports said today.

The Sunday Business Postsaid the board of the airline will begin "intensive behind-the-scenes lobbying" to secure the support of the government, which holds 25 per cent of Aer Lingus shares, in an effort to ensure the failure of Ryanair's motion at the EGM to overrule management and save the route.

Ryanair now holds slightly more than 29 per cent of Aer Lingus, making it the single biggest shareholder in the rival airline.

The Government has said it will not intervene in the Aer Lingus decision as it would not be appropriate to interfere in the running of a private company.

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It is reported that the Aer Lingus board will argue that a government decision to abstain on the EGM vote would leave the door open for Ryanair's motion to succeed and that the government's support is critical to defeating it.

Ryanair has said it is willing to abstain in the vote, pointing out that this would leave the way clear for the government and the employee share ownership trust (ESOT) to vote together to save the Shannon routes.

A high-level report on connectivity at Shannon airport and development in the region generally is expected to be put before the Cabinet at its first post-holiday meeting this week.