Thursday, August 27, 2009

Will Ryan Air end up with Irish Airlines

Irish airline Aer Lingus toned down its opposition to a deal with rival Ryanair, saying today that tripling of losses, rapid cash burn and difficulties in raising funds threatened its independence. The former state airline has twice rejected bids from Europe's biggest low-cost carrier, but Sean Coyle, Aer Lingus' chief financial officer, a former Ryanair executive, said he had "no idea" if Aer Lingus would resist a third approach. "Ryanair will always come back with a bid, Ryanair from the point of view of having a (near) 30 percent shareholding will continue to pursue the company," Coyle told reporters. A Ryanair spokesman had no immediate comment. A new chief executive, Christoph Mueller, takes over at Aer Lingus next week after the previous incumbent resigned in April saying the airline needed fresh ideas.