Ryanair is preparing takeover bid for Alitalia, says Michael O'Leary
Sep 14, 2017, 5:36 am
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Ryanair is preparing takeover bid for Alitalia, says Michael O'Leary
Ryanair is preparing takeover bid for Alitalia, says Michael O'Leary
Chief executive says Irish firm is finalising details of deal for bankrupt airline, but has no interest in German carrier Air Berlin
Ryanair is preparing a binding takeover bid for Italy’s bankrupt airline Alitalia but has no interest in the ailing German carrier Air Berlin, according to its chief executive, Michael O’Leary.
O’Leary said the Irish firm was finalising the details of a deal that would be just the second major acquisition in the no-frills airline’s 33-year history.
Alitalia’s brand and long-haul operations would survive the takeover but Ryanair, which prefers to own its aircraft, would jettison Alitalia’s model of leasing planes.
“We would have to order new planes, whether Boeing or Airbus,” said O’Leary.
He said he hoped any deal would see Alitalia pilots and crew keep their jobs, but signalled that they would have to accept altered employment terms in line with Ryanair’s own.
Alitalia was put up for sale earlier this year after the Italian government finally approved its collapse into administration, having pumped nearly £6bn into the company over a decade.
It followed a vote by employees to reject a rescue plan, which would have seen wages slashed in return for a further €2bn (£1.7bn) injection from shareholders, including Etihad, the Gulf airline, which owns 49%.
Air Berlin is also on the block but O’Leary said he had no interest in making a bid, repeating previous accusations that it was a stitch-up designed to make Lufthansa stronger.
He said he expected EU competition authorities would demand substantial remedies in the event Lufthansa buys Air Berlin, with the carrier likely to have to give up slots on routes within Germany to preserve competition.
If the Alitalia deal proceeds, it would be Ryanair’s first successful takeover since it bought its rival Buzz from KLM in 2003.
Ryanair was blocked by the European Union from acquiring Aer Lingus in 2013 after three failed attempts at swallowing its Irish compatriot.
Chief executive says Irish firm is finalising details of deal for bankrupt airline, but has no interest in German carrier Air Berlin
Ryanair is preparing a binding takeover bid for Italy’s bankrupt airline Alitalia but has no interest in the ailing German carrier Air Berlin, according to its chief executive, Michael O’Leary.
O’Leary said the Irish firm was finalising the details of a deal that would be just the second major acquisition in the no-frills airline’s 33-year history.
Alitalia’s brand and long-haul operations would survive the takeover but Ryanair, which prefers to own its aircraft, would jettison Alitalia’s model of leasing planes.
“We would have to order new planes, whether Boeing or Airbus,” said O’Leary.
He said he hoped any deal would see Alitalia pilots and crew keep their jobs, but signalled that they would have to accept altered employment terms in line with Ryanair’s own.
Alitalia was put up for sale earlier this year after the Italian government finally approved its collapse into administration, having pumped nearly £6bn into the company over a decade.
It followed a vote by employees to reject a rescue plan, which would have seen wages slashed in return for a further €2bn (£1.7bn) injection from shareholders, including Etihad, the Gulf airline, which owns 49%.
Air Berlin is also on the block but O’Leary said he had no interest in making a bid, repeating previous accusations that it was a stitch-up designed to make Lufthansa stronger.
He said he expected EU competition authorities would demand substantial remedies in the event Lufthansa buys Air Berlin, with the carrier likely to have to give up slots on routes within Germany to preserve competition.
If the Alitalia deal proceeds, it would be Ryanair’s first successful takeover since it bought its rival Buzz from KLM in 2003.
Ryanair was blocked by the European Union from acquiring Aer Lingus in 2013 after three failed attempts at swallowing its Irish compatriot.
Sep 14, 2017, 7:04 am
#2
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Interesting. Say that this would proceed, what would happen with the unions? Because with the current unions in place there is no chance that Ryanair is going to get Alitalia employees to fit into a Ryanair model..
Sep 14, 2017, 7:14 am
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Honestly, I just have the impression that Mr. O'Leary is making a lot of noise in order to be in the news. In the end it will happen pretty much the same as with Mr. O'Leary & AB. Lots of noise and finally announcing that any offer would be pure nonsense. He claimed that there is already a final decision that LH will swallow AB. Finally, he is upgrading his fleet at FRA and is asking for slots in TXL (with his own airplanes and his own, i.e. leased, crews as he hardly has any pilots directly employed).
With AZ it will end up the same way. Lots of announcements and noise now. Then either it is the unions or the government blocking him from a takeover and he will finally move more planes to Italy.
With AZ it will end up the same way. Lots of announcements and noise now. Then either it is the unions or the government blocking him from a takeover and he will finally move more planes to Italy.
Sep 14, 2017, 7:34 am
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You could be right...but I think there is a genuine interest here.
I've read conflicting reports as to whether Ryanair actually would be interested in the longhaul network or not - but it will be intriguing to see what will happen next.
There is little chance of a Ryanair-owned AZ remaining in Skyteam, and I also wonder whether there would be any FFP. (Millemiglia is now majority-owned by Etihad, and I doubt FR would want to buy/take over that programme).
I've read conflicting reports as to whether Ryanair actually would be interested in the longhaul network or not - but it will be intriguing to see what will happen next.
There is little chance of a Ryanair-owned AZ remaining in Skyteam, and I also wonder whether there would be any FFP. (Millemiglia is now majority-owned by Etihad, and I doubt FR would want to buy/take over that programme).
Sep 15, 2017, 10:04 am
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Ryanair Preparing Offer for Alitalia
Mr O'Leary stated they are finalising an offer for the company
https://buyingbusinesstravel.com/new...offer-alitalia
https://buyingbusinesstravel.com/new...offer-alitalia
Sep 15, 2017, 10:12 am
#6
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Well preparing to make an offer is not the same as buying it
Good luck unilaterally changing the employees terms, if that were possible don't you think management would have already done it!
Good luck unilaterally changing the employees terms, if that were possible don't you think management would have already done it!
Sep 15, 2017, 10:22 am
#7
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Perhaps if they choice is new terms or unemployment - or if they can get employment its likely to be at similar rates then they probably don't have much choice. Im sure there is some legal way Ryanair will be looking at shafting everyone.
Sep 15, 2017, 11:45 am
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As far as I can tell for the article, it's neither a done deal nor that FR would intend to buy everything. Could just be an offer for the valuable things that AZ still owns, i.e. the brand and slots on busy and lucrative routes.
FR possibly includes an offer to take over the personnel as well but I suspect those terms would be insufficient to yield acceptance by the unions.
That said, the recent announcement by easyjet to cooperate with Norwegian and Westjet in an effort to offer TATL connections certainly does put pressure on FR to do something similar.
FR possibly includes an offer to take over the personnel as well but I suspect those terms would be insufficient to yield acceptance by the unions.
That said, the recent announcement by easyjet to cooperate with Norwegian and Westjet in an effort to offer TATL connections certainly does put pressure on FR to do something similar.
Sep 16, 2017, 12:20 am
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Well simple. Are staff happier with a lower remunerated job or no job at all?
Sep 16, 2017, 3:44 am
#11
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So I'm guessing that Ryanair's offer will somehow exclude personnel, or, a way to remove unions. They would need to make huge changes for it to work, the same kind of changes that the staff/Unins voted 'no' on as per this topic title.
Sep 16, 2017, 5:45 am
#12
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I am wondering how this could fit into the Ryanair model:
I stick to my previous post. Mr. O'Leary is pushing himself into the news and will then put the blame on other parties if things are not working his way.
I stick to my previous post. Mr. O'Leary is pushing himself into the news and will then put the blame on other parties if things are not working his way.
Sep 16, 2017, 7:57 am
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I agree with your post as a whole. Let's not forget that the vast majority of AZ staff strongly opposed to a number of solutions (see AF back in 2008) which, apart from the inevitable job losses, were however aiming at maintaining the integrity of the airline and without any major reshuffle in terms of contracts, overall working conditions etc. Will they be welcoming the prospect of working under FR (and their renowned terms)? Possibly not!
G
G
Sep 18, 2017, 1:32 am
#14
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Quite simple, really.
Feed AZ longhaul planes, which no longer need to be based just at FCO or MXP. Ryanair announced a deal with AirEuropa earlier this summer, but it has run into problems being implemented, and easyjet have now stolen a march with their announcement of Gatwick feed (which is really nothing more than a "relaunch" of the Gatwick Connects service).
FR already do connecting flights in Italy - the next logical step is to fill AZ longhaul planes there (or anywhere else). Get AZ out of Skyteam and start flying wherever they want, without DL/AF/KL's say-so.
I don't think that FR would really want the A320s - they have an all Boeing fleet so the type is not of further use to them - but maybe they might keep the AZ shorthaul network, or parts of it, or re-focus planes on domestic and business routes, allowing FR to reposition some of their own planes out of the Italian market to be better used elsewhere.
Feed AZ longhaul planes, which no longer need to be based just at FCO or MXP. Ryanair announced a deal with AirEuropa earlier this summer, but it has run into problems being implemented, and easyjet have now stolen a march with their announcement of Gatwick feed (which is really nothing more than a "relaunch" of the Gatwick Connects service).
FR already do connecting flights in Italy - the next logical step is to fill AZ longhaul planes there (or anywhere else). Get AZ out of Skyteam and start flying wherever they want, without DL/AF/KL's say-so.
I don't think that FR would really want the A320s - they have an all Boeing fleet so the type is not of further use to them - but maybe they might keep the AZ shorthaul network, or parts of it, or re-focus planes on domestic and business routes, allowing FR to reposition some of their own planes out of the Italian market to be better used elsewhere.
Sep 18, 2017, 2:38 am
#15
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Ryanairs biggest problem is a chronic shortage of pilots.They have cancelled 50 flights a day for the next 6 weeks,and have more pilots leaving for Norwegian.
I'm sure it would suit Ryanair nicely if Alitalia were to go bankrupt and they could recruit a few hundred pilots for their European bases.
I'm sure it would suit Ryanair nicely if Alitalia were to go bankrupt and they could recruit a few hundred pilots for their European bases.