Last edit by: JDiver
Aer Lingus takeover by IAG
Executive summary: Rumours of IAG (International Consolidated Airlines Group, British Airways, IAG Cargo, Iberia and Vueling - Link to Wikipedia article) interest in acquiring EI strengthened in December 2014, with refusals and objections by then 29% owner Ryanair, EI Board of Directors and some Irish government leaders (a 25% stake was held by the Irish government).
Aer Lingus, currently headed by CEO Stephen Kavanagh, was acquired by IAG for 1.36bn in 2015; IAG took full control of Aer Lingus on 02 Sep 2015.
Aer Lingus is working to join the oneworld airline alliance and plans to expand service to the U.S. later this year and next, CEO Stephen Kavanagh said Wednesday.
...Aer Lingus will strive to join the oneworld alliance that counts British Airways and American Airlines among its founding members.
There are some advantages to joining the big-boys club, Kavanagh said. While Avios will be a competitive tool, ultimately, we believe that will result in our joining again oneworld, he said.
Link to USA Today article - 18 May 2016
...Aer Lingus will strive to join the oneworld alliance that counts British Airways and American Airlines among its founding members.
There are some advantages to joining the big-boys club, Kavanagh said. While Avios will be a competitive tool, ultimately, we believe that will result in our joining again oneworld, he said.
Link to USA Today article - 18 May 2016
Aer Lingus is on target to join the OneWorld alliance next year (2017), when it should also be able to benefit from BA's joint venture with American Airlines.
"The next big integration issue will be Aer Lingus coming into the joint business on the transatlantic. That will require some systems changes," said (IAG CEO) Mr Walsh.
Link to article in Independent - 30 Apr 2016
"The next big integration issue will be Aer Lingus coming into the joint business on the transatlantic. That will require some systems changes," said (IAG CEO) Mr Walsh.
Link to article in Independent - 30 Apr 2016
On 26 May 2015, after months of negotiations on a possible IAG takeover, the Irish government agreed to sell its 25% stake in the company. Ryanair retained a 30% stake in Aer Lingus which it agreed to sell to IAG on 10 July 2015 for 2.55 per share. In August 2015, Aer Lingus' shareholders officially accepted IAG's takeover offer. IAG subsequently assumed control of Aer Lingus on 2 September 2015.
Link to Wikipedia article about Aer Lingus
Link to Wikipedia article about Aer Lingus
Aer Lingus IAG take over bid [Master Thread]
#166
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#168
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These politicians don't give a crap about aviation in Ireland or even how Ireland Inc. looks 10 years down the line, there's an election coming within at most 14 months and that's the relevant factor. In a country where populism has always played well - but especially since the crisis - you could probably make a better *political* case for completely nationalizing Aer Lingus than selling the government's stake in it.
#169
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Did someone say gombeen politics?
http://www.independent.ie/business/i...-31021049.html
CITYJET chairman Pat Byrne has dubbed the Government's rejection of the IAG takeover offer for Aer Lingus "gombeen politics at its worst'"....
#170
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I see "Socialist Party TD Ruth Coppinger said it would be really reckless for an island nation to give up its airline.
Speaking at a press conference to publicise a private members' Dil motion opposing austerity, she said Aer Lingus is a prosperous company and workers will resist its sale"
Hmmmm....
Anyway, meantime elsewhere WW plays another card
http://www.independent.ie/business/i...-31026734.html
That sounds like a bargaining position to me. I reckon a fiver (sterling or euro) that the slot guarantee period is longer than 5 years, less than 10 and that the transaction completes....
Speaking at a press conference to publicise a private members' Dil motion opposing austerity, she said Aer Lingus is a prosperous company and workers will resist its sale"
Hmmmm....
Anyway, meantime elsewhere WW plays another card
http://www.independent.ie/business/i...-31026734.html
That sounds like a bargaining position to me. I reckon a fiver (sterling or euro) that the slot guarantee period is longer than 5 years, less than 10 and that the transaction completes....
#171
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I see "Socialist Party TD Ruth Coppinger said it would be really reckless for an island nation to give up its airline.
Speaking at a press conference to publicise a private members' Dil motion opposing austerity, she said Aer Lingus is a prosperous company and workers will resist its sale"
Hmmmm....
Anyway, meantime elsewhere WW plays another card
http://www.independent.ie/business/i...-31026734.html
That sounds like a bargaining position to me. I reckon a fiver (sterling or euro) that the slot guarantee period is longer than 5 years, less than 10 and that the transaction completes....
Speaking at a press conference to publicise a private members' Dil motion opposing austerity, she said Aer Lingus is a prosperous company and workers will resist its sale"
Hmmmm....
Anyway, meantime elsewhere WW plays another card
http://www.independent.ie/business/i...-31026734.html
That sounds like a bargaining position to me. I reckon a fiver (sterling or euro) that the slot guarantee period is longer than 5 years, less than 10 and that the transaction completes....
It will be interesting to see the outcome of the talks with the unions - if the unions offer a vote of confidence at the end of the day for the takeover bid after WW does his charm offensive on them - the politicians (be it Taoiseach, TDs or whoever opposing) will look like the most short-sighted people in the house.
#173
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"Standing up" in this case is not pro-consumer. Its gombeenism...
#174
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The government's misgivings come from their lack of "stones" - they fear being voted out of power, particularly the junior party's sitting candidates, whose seats are already all but lost, in constituencies with vocal Aer Lingus union groups.
And it's not a merger, per se - Aer Lingus would be run as a separate company, just as BA, Iberia and Vueling are run as separate companies.
#175
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#176
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Where it might be an issue is LHR-DUB; much in the way that the IB/BA transaction causes an issue LHR-MAD.
#177
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The FT is usually far more sober and reliable than other news outlets...
so let's hope this is true. This saga has run for long enough!
so let's hope this is true. This saga has run for long enough!
Originally Posted by The Financial Times
IAG and Dublin close to agreement on Aer Lingus takeover
People familiar with the deal IAG has made a 1.4bn bid for Aer Lingus said the UK-based company and the Irish government are closer to agreement than they have ever been.
The real sticking point is whether Mr Walsh and the Irish government will compromise on the Heathrow slots guarantee.
IAG has made clear that any extension of its five-year guarantee for keeping the Aer Lingus slots on Irish routes would have to be commercially sound. This would require significant concessions which Dublin may not be able to deliver.
People familiar with the deal IAG has made a 1.4bn bid for Aer Lingus said the UK-based company and the Irish government are closer to agreement than they have ever been.
The real sticking point is whether Mr Walsh and the Irish government will compromise on the Heathrow slots guarantee.
IAG has made clear that any extension of its five-year guarantee for keeping the Aer Lingus slots on Irish routes would have to be commercially sound. This would require significant concessions which Dublin may not be able to deliver.
#178
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I hope local Irish news outlets doesn't make so much noise again - this deal really is a good one for Ireland - a once in a lifetime opportunity for it to revitalise its long-haul aviation plans and to strengthen Aer Lingus. If the news outlets does, I'm afraid the government have to resort to the populist "nay-nay-nay" rhetoric to seemingly appease the locals (which is super odd at least here).
#179
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I took a quick glance through this thread and didn't see an answer to this question, however if it is there I apologize in advance.
If this does go though, will Aer Lingus rejoin OW? I have a small stash of OW miles I would love to use and I prefer flying though Dublin for the US Customs advantage.
If this does go though, will Aer Lingus rejoin OW? I have a small stash of OW miles I would love to use and I prefer flying though Dublin for the US Customs advantage.
#180
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