Tag Archives: IAG

ALREADY contentious, Shannon based Fine Gael Senator Tony Mulcahy has turned up the political heat regarding the potential sale of the State’s share in Aer Lingus, as he has vowed to resign the party whip if the Government does sell to IAG. He made his comments after IAG CEO Willie Walsh addressed the Oireachtas Joint Committee on Transport and Communications. Mr Walsh told the Committee that in the event of an IAG takeover, Shannon would get a five-year guarantee of Heathrow connectivity. However, after being quizzed by Senator Mulcahy, he acknowledged that he was not offering any guarantees around the preservation of the Aer Lingus services between Shannon and the US. While Mr Walsh did say that transatlantic services from Shannon have “huge potential” and that the numbers travelling on them are likely to increase in the summertime, this didn’t cut much ice with Senator Mulcahy. In a statement released shortly after the Committee sitting he said, “I cannot support …

SHANNON and Cork can have guarantees of Heathrow connectivity for five years if IAG buys the State’s share in Aer Lingus, its CEO Willie Walsh pledged at today’s meeting of the Oireachtas Joint Committee on Transport and Communications. Clare political figures have expressed concern about the possibility of Shannon losing its vital connectivity to Heathrow in the event of a takeover, but Mr Walsh insisted that the guarantee he is offering is far better than what the airport actually has already. He also claimed that while the concern is at one level understandable, it is actually misplaced, given that the route is profitable. Indeed, he went so far as to say that the current Aer Lingus management could not match the IAG guarantee without drawing the ire of some of the shareholders. While he said IAG is happy to give the guarantees and that there is no reason to pull away from what is a profitable route, he stressed that he will not give …

This afternoon (Thursday), the Joint Committee on Transport and Communications will hear from Willie Walsh, CEO of International Airlines Group (IAG), on the potential sale of Aer Lingus. Chairman, John O’Mahony, said, “The committee welcomes the chance to hear directly from Willie Walsh on IAG’s bid for Aer Lingus. The possible sale of the state holding in Aer Lingus is an issue of great significance to the country. As such, we as a committee, have already held two meetings on the issue, at which we heard from numerous interest groups who would be impacted by the potential sale. “The meeting [with Mr Walsh] is a continuation of that process and the committee remains anxious to ensure that any decision taken by Government in relation to a potential takeover is based on securing the strategic interests of the country.”

WHILE he didn’t go as far as saying that there is no prospect of a deal with IAG on Aer Lingus in the absence of guarantees for Shannon, Transport Minister Paschal Donohoe stressed that connectivity for the Mid-West will be a very important consideration, when he spoke to The Clare Champion. “We’re looking at all of the consequences that the proposed bid could have for connectivity. I’m very much aware of how important connectivity is for the Shannon region and how important Shannon Airport is. I have said throughout all of this that national connectivity and the particular impact on our regions will be vital if a bid comes in,” he said. There have been claims that even if guarantees for Shannon and Cork are built into an eventual agreement between the State and IAG, they will have no real legal standing. Asked if there are any precedents where guarantees have been given on future connectivity, the minister declined to …

CLARE County Council has passed a motion calling on the Government not to dispose of its 25.1% share in Aer Lingus. At a special meeting of the local authority on Monday afternoon, the members passed the motion unanimously, while efforts are to be made to get other local authorities in the region to take a similar stand. There have been fears that if the proposed IAG takeover of Aer Lingus proceeds that Shannon will lose its Heathrow connectivity and several of the members called on Clare’s Oireachtas members to make sure this does not happen. Councillor Pat McMahon said that a future loss of connectivity would “choke future investment in Clare and the surrounding counties”, while Councillor Cathal Crowe warned that Shannon’s industrial base could be reduced to “large empty warehouses if these slots go”. Calls for the retention of the State’s holding weren’t confined to the Fianna Fáil members, with Fine Gael’s Mary Howard saying she would “be very, …

The IAG bid to takeover Aer Lingus will be the subject of debate at Áras Contae on Chláir on Monday afternoon next. A special meeting of Clare County Council has been called, at which much of the discussion will focus on how any takeover of Aer Lingus might impact on Shannon, and the need, in any circumstances, to protect the airport’s access to the highly lucrative London Heathrow slots. It is expected that the meeting will adopt a resolution calling the Government to stoutly resists pressure to sell off it’s 25.1% take in Aer Lingus, which would scupper IAG’s takeover offer. It has been made clear by Transport Minister, Paschal Donohoe that no “formal offer” has yet been made by IAG and the process is at an “early stage”.

The Oireachtas Transport Committee will hold a special meeting tomorrow (Thursday) to discuss the impact of the potential sale of Aer Lingus. Appearing before the committee in Leinster House will be representatives from: The Irish Airline Pilots Association, The Central Representatives Council of union groups within Aer Lingus, Dublin Chamber of Commerce, Cork Chamber of Commerce, Shannon Chamber of Commerce, Shannon Group PLC, Limerick Chamber of Commerce,IDA Ireland and SIPTU. Chairman, John O’Mahony, said, “Any proposed sale of the State’s stake in Aer Lingus would be of significant interest to passengers and to various interested stakeholder groups, including tourism, business and commerce groups and those working in the aviation industry in Ireland. “Tomorrow we will have a chance to discuss the implications of any possible sale of the Governmen’s stake in the airline in more detail, as well as the impact of any sale for the taxpayer. Committee members will want to address concerns about possible job losses and routes …

The Irish Travel Agents Association (ITAA) has voiced concerns regarding the proposed takeover of Aer Lingus by IAG. Pat Dawson, CEO of the ITAA said, “We would have some reservations with regard to the proposed takeover of Aer Lingus by IAG. It is crucial that the existing slots between Dublin, Cork, Shannon and Heathrow Airport are protected and maintained. We realise that a long term agreement to this effect may be difficult to secure, but everything that can be done should be done now”. Mr Dawson continued, “The ITAA would see value for money and greater choice for Irish consumers as being a vital part of the negotiations and central to any agreement reached. It is our opinion that the Aer Lingus brand and all that it encompasses is worth more than the €1.35 billion currently proposed. Aer Lingus is a worldwide brand viewed by many as providing a friendly and safe service both at home and abroad. “We would …