Ryanair bid 'backed by 10 airlines'

Oct. 5, 2012
The package relates to Ryanair's proposals for the future of overlapping Ryanair/Aer Lingus routes from Ireland, where there is currently no third airline; and for increasing airline competition to and from Ireland in the event of the low-cost carrier being allowed to buy Aer Lingus.

The package relates to Ryanair's proposals for the future of overlapping Ryanair/Aer Lingus routes from Ireland, where there is currently no third airline; and for increasing airline competition to and from Ireland in the event of the low-cost carrier being allowed to buy Aer Lingus.

Ryanair yesterday launched an expansion of the airline's Dublin-Brussels service.

Its head of communications, Stephen McNamara, said that the final remedy solution could well act as a blueprint for all future airline mergers. He added that management was confident Brussels would find it "very difficult" not to approve the takeover of Aer Lingus, on competition grounds, on the back of the proposals.

The European Commission has until the end of January to make a ruling on the matter, having opened a Phase II probe at the end of August.

On other matters, Mr McNamara said that while Ryanair will increase its Irish passenger figures from 9.1 million to 9.5m this year, it will not do so at Dublin Airport, where its figures are likely to drop by about 300,000 people.

Growth will be seen via the non-DAA owned airports of Kerry and Knock, he maintained.

He also touched upon an interview given by Michael O'Leary in which the Ryanair chief said that if the Aer Lingus takeover succeeds, Ryanair would keep its average fares unchanged but lower the average Aer Lingus fare by 20; as well as slash average fares to the US from 200 to 99.

Asked if the latter was a realistic prospect, Mr McNamara said it could be done, as a modernised fleet would save on fuel costs and a "re-vamp" of business class would subsidise lower fares in economy class.

He added that Ryanair was still talking to parties interested in buying Stansted Airport from British airport owner BAA, but would "prefer" to use its money upgrading its fleet of aircraft than buying a stake in the airport.

Various Stansted suitors want Ryanair to either take a minority stake in the airport or promise to grow further there. While anything up to 25% has been mooted, British competition rules might only allow the Irish carrier take a 10% share in Britain's third largest airport.

Meanwhile, latest passenger figures from Aer Lingus show that just over one million people flew with the airline last month; representing a 1.7% year-on-year increase. That figure included Aer Lingus's regional operations. Excluding these, its mainline passenger levels fell by 0.8%, year-on-year, to 926,000.

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