sfozrhfco

AER LINGUS’S senior management team has held talks with US low cost carrier JetBlue Airways about it taking a stake in the Irish airline.

According to informed sources, JetBlue is the Aer Lingus management’s preferred trade investor at a time when the Government is planning to sell its 25 per cent holding in the airline.

http://www.irishtimes.com/newspaper/...313154997.html

FWAAA

While Aer Lingus might prefer B6 as an investor, jetBlue isn't so flush with cash that it can reasonably invest $150 million or more in a foreign airline. B6 isn't in the cash crunch that it was in a few years ago, but its cash balance is still a bit light.

volvo99

Add to that the talk some time ago that LH was publicly considering selling off their B6 stake as well. Not surprising since LH's other european ventures such as swiss, the belgian venture, austrian, LH Italia either are underperforming or kaput.

And what would B6 want with such a stake?

One possibility is to just have it sit as an investment; just as LH did. Or grow it as a codeshare with int'l feed into JFK. Another possibility is a Northwest-KLM type marriage seeking antitrust immunity to coordinate schedules.

Hurdles?

Sure, legislative for one. Also, Michael O'Leary has sucked much of Aer Lingus product out to make them a LCC type carrier like Ryanair. Aer Lingus does have LHR slots. And a marriage of this type would likely mean the end of JetBlue seeking to grow organically into a transatlantic carrier. I'm not sure the cabin and pilot crews would just stand by and see possible future jobs outsourced wholesale to a foreign carrier.

sfozrhfco

B6 could get the money. I don't see that as being an obstacle but really I would not think that EI is a great investment. Even the big carriers in Europe are having trouble. I'd rather see B6 buy some stock in Apple. Once the stock doubles again, they will have plenty of cash to fund service to Europe/Asia/South America

sbm12

Is that even on the road map at this point?

sfozrhfco

Part of the discussion includes an arrangement similar to what UA has done with IAD-MAD. EI would fly the planes and provide the crews but it would be jetBlue service to LHR/CDG. This could potentially make sense if B6 wanted to test out service to Europe but as UA's experience has shown, this would not require taking a stake in EI.

This is all on the wish list for EI but it is unclear at this point if B6 is interested in anything other than having a conversation.

sbm12

And this morning Barger stated that they have no interest in acquiring the shares.

sfozrhfco

Which makes sense. Marginal European carriers are perhaps one of the worst possible investments. Etihad reportedly still has some interest. I'd say, let them have it.