Government rejects Ryanair offer
23-Jan-2009 |
Airline Code [RYR]
View More Ryanair News
Tags :UK, Ryanair, Aer Lingus
The Minister for Transport Noel Dempsey T.D. announced (22-Jan-09) that Government has decided not to accept the Ryanair offer of EUR1.40 per share for its 25.12% shareholding in Aer Lingus.
The decision was taken on the basis that the Ryanair cash offer greatly undervalues Aer Lingus and that a merger on the basis proposed would be likely to have a significant negative impact on competition in the market
Speaking today Minister Dempsey said; "Government took the view that the Ryanair offer greatly undervalues Aer Lingus. There were a number of other issues considered by Government in coming to this decision. Competition was a major consideration. The cornerstone of Irish aviation policy is and has been for many years, to encourage competition. Because we live on an island Irish consumers depend very heavily on air transport. A monopoly in this area would not be in the best interests of Irish consumers."
The offer by Ryanair did not include any proposed remedies for the virtual monopoly which would result if the offer was accepted.
Other considerations also taken into account by Government were the impact of this merger on airports policy and consequently on regional development policy.
Government was also mindful of the importance of ensuring maximum connectivity for Irish air travellers and so concluded that this was best ensured in a competitive market.
(c) Centre for Asia Pacific Aviation. Date posted: 23-Jan-09
For in-depth analysis of the low cost airline sector worldwide, subscribe now to the peerless Peanuts! Weekly
|
Other Ryanair News |
Government rejects Ryanair offer 
