Aer Lingus board likely to accept bid from British Airways owner IAG

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  1. uggboy
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    Aer Lingus board likely to accept bid from British Airways owner IAG

     
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  2. euromannn
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    BA is abad airline to fly internationally if seeking reward points. Must pay full fare to get full mielage credits and of course BA charges teh highest fuel surcharges in the business.

    In USA it takes 15 minutes for BA rep's to answer the phone making BA an extremely poor choice for customer service!
     
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  3. uggboy
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    Thanks for sharing your insights with us.
     
  4. blackjack-21

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    Surprised if this one goes through, even with the increased offer from BA (IAG) as EI being Ireland's flag carrier, they'd lose that prominence if merged into BA. Don't think EI's unions would be too happy being swallowed up by BA either. But in this day and age of mergers and acquisitions anything is possible, I guess.
     
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  5. uggboy
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    As you said, anything is possible. EI would be part of the IAG Group which incl. BA and Iberia, plus it plans to take over some more airlines in the future. We will see what place EI would take within the group and how the proposed "takeover" would proceed in the future and what it all means for the people of Ireland. Cheers.
     
  6. uggboy
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    UPDATE:

    Aer Lingus sale: Oireachtas commitee hearing to discuss impact as concern grows in coalition


    The Oireachtas Transport Committee will hold a special meeting to discuss the impact of the potential €1.4bn sale of Aer Lingus.

    The move comes amidst growing concern within the coalition on the sale of the airline which is 25.1pc owned by the State

    It is understood that Tanaiste Joan Burton told the Labour parliamentary meeting this week that she had yet to be convinced that selling the airline was the right move.

    However, she added that the deal could not be blocked and that people had to be realistic about what the Government could do while a number of Fine Gael TDs and senators also spoke out against it at their parliamentary meeting.

    IAG, the parent of British Airways, Iberia and Vueling, has made an offer of €2.55pc, after earlier offers were rejected, and the board of the airline has recommended it - pending regulatory approval.

    The State owns a 25.1pc stake while rival Ryanair holds almost 30pc.

    http://www.independent.ie/business/...t-as-concern-grows-in-coalition-30947077.html
     
  7. uggboy
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    FURTHER UPDATE:

    Transport Minister: Government 'yet to be convinced' on Aer Lingus takeover

    The Government "remain to be convinced" on the merits of IAG's takeover bid for Aer Lingus, Transport Minister Paschal Donohoe has revealed.

    He said the interdepartmental group, which is advising on the offer, have held a second meeting with International Airlines Group.

    This group comprises representatives from the Departments of Transport, Finance, Public Expenditure and Reform and NewERA, which provides corporate financial expertise for the Government.

    It is tasked with examining the issues around an offer for the State's shareholding in Aer Lingus.

    However, Mr Donohoe told independent.ie these discussions failed to allay concerns in relation to a potential sale of the airline.

    "IAG have laid out the circumstances in which they would be prepared to make a formal bid.

    http://www.independent.ie/business/...onvinced-on-aer-lingus-takeover-30968305.html
     
  8. uggboy
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    RECENT UPDATE:

    Aer Lingus shares fall almost 10pc today amid reports that Government is preparing to reject IAG offer

    SHARES in Aer Lingus fell almost 10pc this afternoon amid reports that the Government is preparing to reject IAG’s indicative offer to buy a 25pc stake in the Irish airline.

    Bloomberg reported that a person familiar with the situation had been told the Government will refuse the deal.

    “A final decision has yet to be taken, according to the person, who asked not to be identified because the matter isn’t public,” Bloomberg reported. A Department of Transport official declined to comment on the status of deliberations, as did a spokeswoman for IAG.

    http://www.independent.ie/business/...s-preparing-to-reject-iag-offer-30977582.html
     
  9. uggboy
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  10. uggboy
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  11. uggboy
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  12. uggboy
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  13. uggboy
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    The "only" remaining stumbling block which keeps the government on guard regarding selling the state's 25% stake has to do with the guarantees regarding the LHR slots and how they're used between DUB/LHR and LHR/DUB, while IAG offers a 5 years guarantee, the state wants a 10 year guarantee. As said, this is the only big stumbling block left which still has to be worked on by the state and IAG before they can takeover Aer Lingus / EI.

    We will see how this goes over the coming weeks, as always, sometimes it needs a bit time to conclude a deal or negotiate to find solutions which would be acceptable for both sides in this case the state and IAG, but of course, we shouldn't forget the passengers either, or in the state's case the voters / taxpayers who want good value realized from the state's investment into "our" airlines. One further note of course concerns the accessibility of Ireland to the UK, especially LHR, Ireland is an island nation and needs certain guarantees of accessibility and the slot issue is albout keeping Ireland and DUB our main gateway to the Europe and the world open to the public in a way which suits of course commerce and the leisure passengers from Ireland and from around the world.

    IAG sees tremendous potential in the future for EI especially their routes to the US could be strengthend over the coming years, plus pre-clearence in DUB is a big plus and draw for passengers to consider flying via DUB even from London or AMS or FRA or CDG, so there's potential, on the other side IAG might hope that channeling passengers from DUB via LHR towards BA is also a good move, but EI uses T2 in LHR while BA of course have their own T5 at LHR, we will see how they're going to integrate this and how they will operate "point to point" flights from DUB should they succeed with buying EI in the future, Etihad has indicated lately that they're most likely to see their 5% stake in EI should IAG take over EI. It now depends on the state and Ryanair which holds around 30% in EI. We will see, as they say, time will tell.
     
    Last edited: Mar 24, 2015
  14. uggboy
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    Decision on €1.4bn takeover of Aer Lingus set to drag into May

    A decision by the Government on the future of Aer Lingus now looks set to be delayed until May, with no signs that the Cabinet is due to consider the issue at its meeting next Tuesday.

    It had been anticipated that the Government might have made a decision by next week on the potential sale of the State's 25.1pc stake in Aer Lingus to IAG.

    Aer Lingus holds its annual general meeting next Friday, while IAG also releases first quarter results next Thursday.

    It appears that neither company will now be in a position to provide any meaningful update to shareholders at the events, despite the possible €1.4bn takeover.

    http://www.independent.ie/business/...aer-lingus-set-to-drag-into-may-31169209.html
     
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  15. redtailshark

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    Yeah, evidently, the behind-the-scenes horsetrading and various sweetners for all sides have not yet been agreed.

    They should hurry up and sell to MOL, it will be much better for everyone.
     
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  16. uggboy
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    Aer Lingus sale negotiations have taken too long - chairman

    Aer Lingus chairman Colm Barrington has revealed his frustration at the time the Government has taken to make a decision on whether or not it will sell the State's 25.1pc stake in the airline to IAG.

    "We're disappointed it has taken so long," he told the Irish Independent after the Aer Lingus annual general meeting at Dublin Airport yesterday.

    "We're certainly hopeful that it will get resolved and that it will get resolved positively."

    http://www.independent.ie/irish-new...ns-have-taken-too-long-chairman-31189510.html
     
  17. uggboy
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    Aer Lingus sale near as officials tease out details of IAG's bid with EC chiefs

    Department of Transport officials have been in direct contact with the European Commission ahead of the Government's long-awaited decision over its stake in Aer Lingus.

    The communication between Minister Paschal Donohoe's officials and the European Commission centred around a number of issues, including the highly valuable Heathrow slots and certain routes currently operated by the airline.

    The proposed takeover by the International Airlines Group (IAG) is now expected to be decided upon by the Cabinet the week after next.

    Mr Donohoe, pictured, has formally received a report into the proposed takeover which is believed to recommend a sale to the British Airways-owned airline.

    The Dublin Central TD will consider the report in the coming days before bringing a recommendation to Cabinet.

    http://www.independent.ie/irish-new...ails-of-iags-bid-with-ec-chiefs-31250615.html
     
  18. uggboy
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    Panic in Labour as Aer Lingus sale to be given green light

    LABOUR Party TDs were in a state of panic today as ministers prepared to give the green light to the controversial sale of Aer Lingus.

    A number of Labour TDs, including Joe Costello, Robert Dowds and Michael McNamara were this morning demanding guarantees from Tanaiste Joan Burton that any such deal must allay their fears a potential sale.

    The deputies insist they will not support a deal unless there are “substantial assurances” over issues such as routes, the Heathrow slots, jobs, the use of Cork and Shannon Airports and the actual valuation of the company.

    http://www.independent.ie/business/...us-sale-to-be-given-green-light-31253960.html
     
  19. uggboy
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    Taoiseach hints that Aer Lingus share sale will happen

    TAOISEACH Enda Kenny has given his strongest hint yet that the government sale of the 25pc Aer Lingus sale will go ahead today.

    Mr Kenny told the Dail the Cabinet will resume deliberations this afternoon and make a decision "in the best interests of the country."

    The Taoiseach said the Government turned down an offer in February and would consider key issues around connectivity for regional airports, jobs at Aer Lingus.

    "We will make the decision this evening and that decision will be in the best interests of the country," Mr Kenny said.

    http://www.independent.ie/irish-new...r-lingus-share-sale-will-happen-31255194.html
     
  20. uggboy
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