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Aer Lingus Considers Strategic Alliance
Recently, Aer Lingus has been weighing the idea of making a strategic alliance with a leading European airline. This would help it to be able to withstand the threat of the hostile takeover from Ryanair.
The carrier has been consulting with its financial advisors on a few potential alliances. Among some of the carriers being looked at are Air France, British Airways, and Lufthansa. This announcement comes just shortly after the news that the chief executive of Aer Lingus, Dermot Mannion, had resigned with effects that start immediately. Since then, Aer Lingus has been looking for ways to maximize revenue. Some think that an alliance with another airline could help to do just that. Colm Barrington will take over as the new successor until someone can be found to take over Dermot Mannion’s spot.
Ryanair has been trying to take over Aer Lingus now for quite some time. The first takeover attempt was blocked by the European competition authorities. The second takeover attempt was an all cash bid that was launched last December. It was set at €1.40 a share. This was a bid that was half as much as the original bid from Ryanair, which was €2.80. Since the second bid has yet failed again, the share price has almost halved once more.
The Irish government had opposed the second bid, this was for competition reasons, and said that it was in favor of Ireland having two leading carriers. More information about a strategic alliance with another European airline will be talked about more when more information has been released.
For more information visit: www.aerlingus.com
Source
Recently, Aer Lingus has been weighing the idea of making a strategic alliance with a leading European airline. This would help it to be able to withstand the threat of the hostile takeover from Ryanair.
The carrier has been consulting with its financial advisors on a few potential alliances. Among some of the carriers being looked at are Air France, British Airways, and Lufthansa. This announcement comes just shortly after the news that the chief executive of Aer Lingus, Dermot Mannion, had resigned with effects that start immediately. Since then, Aer Lingus has been looking for ways to maximize revenue. Some think that an alliance with another airline could help to do just that. Colm Barrington will take over as the new successor until someone can be found to take over Dermot Mannion’s spot.
Ryanair has been trying to take over Aer Lingus now for quite some time. The first takeover attempt was blocked by the European competition authorities. The second takeover attempt was an all cash bid that was launched last December. It was set at €1.40 a share. This was a bid that was half as much as the original bid from Ryanair, which was €2.80. Since the second bid has yet failed again, the share price has almost halved once more.
The Irish government had opposed the second bid, this was for competition reasons, and said that it was in favor of Ireland having two leading carriers. More information about a strategic alliance with another European airline will be talked about more when more information has been released.
For more information visit: www.aerlingus.com
Source