Member Article

Ryanair gives green light for Aer Lingus merger

Ryanair has given assurances that its merger with Aer Lingus is likely to go ahead, after a series of changes to its proposals over the deal.

The airline, which offered €694m to merge with Aer Lingus in June, said it has put forward a “radical and unprecedented” set of ammendments to the EU with the hope of having the transaction approved by regulators.

In an update released alongside the firm’s results, Mr O’Leary said: “We believe these remedies address every current Ryanair\Aer Lingus crossover route and all other competition issues raised by the Commission in its Statement of Objections.

“The remedies involve two upfront buyers each basing aircraft in Ireland to takeover and operate a substantial part of Aer Lingus’ existing route network and short-haul business.

“This will be the first EU airline merger which will deliver structural divestitures and multiple upfront buyers.We look forward to completing our offer for Aer Lingus subject to receiving approval from the EU competition authorities in early March.”

In its third quarter results released on Tuesday, the budget flight firm said profits had risen 21%, and passenger levels were up 3%.

Michael O’Leary, Ryanair’s chief, commented: “Our Q3 profit of €18m was ahead of expectations due to strong pre-Christmas bookings at higher yields.

“Our fuel costs rose €81m, (+24%), slightly less than expected as oil prices increased 22% (from $84pbl) to $102pbl.

“Excluding fuel, Q3 unit costs rose 4% due to excessive increases in Italian ATC costs, Spanish airport charges, and the strength of Sterling to the Euro.”

Ryanair currently owns approximately 30% of Aer Lingus, and hopes to merge the two airlines, which it says will secure the future of both firms.

This was posted in Bdaily's Members' News section by Miranda Dobson .