Following the announcements of recent approaches to Aer Lingus by IAG, the Irish Takeover Panel has deemed that Aer Lingus is now in an ‘offer period’, Minister for Transport, Tourism & Sport, Paschal Donohoe said on Tuesday evening.
He was speaking in the Dáil in response to a joint submission by Deputies Michael McNamara, Timmy Dooley, Joe Carey and Kieran O’Donnell on the necessity to maintaining London Heathrow slots to ensure balanced development.
“The Takeover Panel Rules in relation to communications apply to all parties during such an offer period and all parties, including the Government as shareholder, must apply the highest standards of care to any statements made on the matter.
Specifically shareholders must take care in any of their communications to avoid revealing any information that could potentially impact either positively or negatively on the Aer Lingus share price,” Minister Donohoe said.
Currently, no formal offer has been made to Aer Lingus’ shareholders. The minister said he wanted to make clear that should such an offer be made, the Government will take great care and exercise great caution in examining the pros and cons to Ireland of such an offer.
“We will bear in mind the same issues we considered when faced with previous takeover bids;
We will consider the impact any change in ownership of Aer Lingus would have on the connectivity of Ireland – connectivity that is vital to our economy and our society.
We will consider the impact it would have on competition for passengers to and from Irish airports.
And we will consider the impact on the bases from which Aer Lingus currently operates,- namely our State and regional airports.
We will also, of course, consider the value put on the State’s shareholding in Aer Lingus by any offer,” Miinister O’Donohoe said.
Airport slots are a right granted to an airline, which allows the airline to schedule a landing and departure during a specific time period. Airport slots are not ‘owned’ as such by the airlines, and are certainly not owned by Governments or states. However, at congested airports, such as Heathrow, a secondary market has developed that has allowed airlines trade slots with each other to meet their changing business needs.
A native of Ennis, Colin McGann has been editor of The Clare Champion since August 2020. Former editor of The Clare People, he is a journalism and communications graduate of Dublin Institute of Technology.