Trader Posted October 5, 2006 Share Posted October 5, 2006 http://www.iht.com/articles/2006/10/05/business/ryan-in.php Link to comment Share on other sites More sharing options...
Thebean Posted October 5, 2006 Share Posted October 5, 2006 http://www.iht.com/articles/2006/10/05/business/ryan-in.php I'm not convinced this is a serious move by RyanAir, who are notorious for always looking for a way to rub their competition's nose in it. The concept of a Ryanair controlled Lingus "competing" with Ryanair on various routes is laughable. LCC's are built from the ground up, not from the top down. Though Lingus has done its best to reengineer itself, it is a hybred LCC. It could never get costs low enough to compete with a "from the ground up LCC" that decided it was going to play in the trans Atlantic LCC sandbox. Nonetheless, it may be a while before anyone really takes a run at that niche. The news that Ryanair might control a transatlantic carrier that would feed into at least one of its hubs is sure to be a hot conversation in legacy carrier executive suites on both sides of the pond. In a business where 10% margins are considered huge, it wouldn't take much in the way of traffic erosion, but far more dangerous to legacy carriers, yield erosion, to turn the Atlantic into a bath of red ink. Without Atlantic profits to subsidize domestic losses, a move like this could be the death knell for a number of smaller flag carriers. However, it's got a way to go. Never a dull moment..... Link to comment Share on other sites More sharing options...
Guest prob30 Posted October 6, 2006 Share Posted October 6, 2006 Very bad news for all airlines in N.A. that fly the Atlantic, or are planning to fly the Atlantic. Link to comment Share on other sites More sharing options...
yul07 Posted October 6, 2006 Share Posted October 6, 2006 <<<O'Leary pledged to keep Aer Lingus running as a separate company and to respect the powerful role of labor unions in the Dublin-based operation. >>> and the cow jumped over the moon. Link to comment Share on other sites More sharing options...
Kip Powick Posted October 6, 2006 Share Posted October 6, 2006 <<<O'Leary pledged to keep Aer Lingus running as a separate company and to respect the powerful role of labor unions in the Dublin-based operation. >>> I remember a man telling all of us the same load of bovine excretement when CDN bought WD.... ahhhh memories of Kevin Jenkins Link to comment Share on other sites More sharing options...
J.O. Posted October 11, 2006 Share Posted October 11, 2006 Aer Lingus Pilots Buy Up Company Shares, Indicating Opposition to Ryanair Takeover Bid LONDON (AP) -- Pilots for Irish airline Aer Lingus Group PLC have bought up almost 30 million euros ($37.7 million) worth of the carrier's shares, raising speculation that those opposed to a takeover bid by low-cost airline Ryanair Holdings PLC are shoring up a blocking stake. A notice to the Irish Stock Exchange on Wednesday confirmed that the Irish Airline Pilots Pension group has bought almost 10 million shares at 3.04 euros ($3.81) each, building a 2.12 stake in the airline. Ryanair's surprise 1.48 billion euro ($1.86 billion) offer for Aer Lingus last week was rejected by the company, the Irish government and Aer Lingus employees. Analysts said the pilots' move spelled potential trouble for Ryanair Chief Executive Michael O'Leary. The pilots' association declined to comment on the stock purchase, but analysts said the move could be part of a creeping equity grab designed to block Ryanair's takeover. Ryanair's bid is conditional on gaining 50.1 percent of Aer Lingus. It currently holds 19.2 percent after buying up shares last week. The government, which sold most of its holding in the previously state-owned carrier to give it the freedom to grow, still holds a 28 percent stake in the carrier. It has pledged to retain a minimum 25.1 percent stake -- the minimum required to block any attempt by a majority owner to have the company de-listed from stock markets. The current government stake, combined with the pilots' holdings and the 12 percent owned by employee share ownership trusts, gives government and staff just over 42 percent of the carrier. Dresdner Kleinwort analyst Mike Powell said that Ryanair now faces a battle. "It's up against entrenched interests with over 40 percent of Aer Lingus stock -- government, employees, unions, including some resistance among their own shareholders," said Powell. "I know some investors who have completely sold their Ryanair stake. Strategically, Ryanair's bid is a disaster." Analysts said that Ryanair was unlikely to succeed without raising its offer price. They believe the carrier, which has rapidly expanded across Europe but never mounted such an ambitious takeover bid before, certainly could afford to raise its offer, because it has cash reserves exceeding 2 billion euros ($2.6 billion). Aer Lingus shares on Wednesday were well above Ryanair's offer price of 2.80 euros ($3.51) at 2.90 euros ($3.64), unchanged from the previous close. Ryanair shares were 0.5 percent lower at 8.58 euros ($10.76). Opponents to the takeover claim it will wipe out competition, drive up prices and lead to job cuts. Labor leaders are also concerned that Ryanair does not recognize union rights, insisting instead of individual staff contracts. Link to comment Share on other sites More sharing options...
Specs Posted October 11, 2006 Share Posted October 11, 2006 Nonetheless, it may be a while before anyone really takes a run at that niche. You really think so? AC will be using A319s for NAT this spring and with a few additional fuel mods could probably reach into continental/southern southern Europe from YHZ, YUL or YYZ. Couldn't that be taken as a proof of concept for someone with the wherewithal to raise the funds for a small starter fleet. Link to comment Share on other sites More sharing options...
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