Ryanair to buy Aer Lingus ?

[cnc]

Try TATL flights..... but with many problems. Immigration is not possible on secondary airports.

hm oke and merge it with FR which means EI go's LCC or merge with FR which means FR becomes a full service carrier or keep both seperated?

[sn26567]

The EU is likely to oppose Ryanair's bid because Ryanair does not make enough concessions.

http://www.reuters.com/article/2012/11/ ... VL20121105

It seems however that Ryanair made a lot of concessions on every route that is served by both carriers:

viewtopic.php?p=270798#p270798

Could it be that the EU is biased against Ryanair because the latter has kept bashing it? The EU has indeed accepted a lot of mergers before.

[RoMax]

Could it be that the EU is biased against Ryanair because the latter has kept bashing it? The EU has indeed accepted a lot of mergers before.

I see it like this. In general the EU is for an open market with as much competition as possible. But in the same time, the EU has to secure the European economy and they have to make sure that people keep working. With RYR's increasing power you get more jobs at RYR, but in the same time even more jobs get lost with other operators. And it's a simpel fact that RYR's operations bring in less money for the government (it costs them money most of the times). All in all, I can assume the EU wants RYR to become big, but not too big and too powerfull in certain markets.

And of course, a complete free market is an illusion...not in Europe, not in North-America and even less in other parts of the world.

[Inquirer]

The news the EU's competition authorities will most likely rule unfavourably on the merger proposal is no surprise to me as it is based on a rational analysis, regardless of the parties involved.

I know Ryanair pushed a plan of theirs in which one (or more) third parties would set up a new base in Dublin and see them enter in competition with Ryanair on those routes also operated by Aer Lingus, but think about it for a minute: if you can make a third party (or parties) do that on your command and dictate them which routes they should fly on, just how independent are they truly operating? And what is the long term prospect of these new operators, especially if they are multiple little ones?

The irony of it all is that there's currently already a truly independent operator at Dublin doing exactly what Ryanair proposes to bring to the market to remedy the merger with, one that's well established, successful and profitable and is thus the ideal long term alternative to Ryanair under the remedies the EU ideally would want to see: it's called Aer Lingus.

Think about it for a minute and I am sure you'll see just why the EU is going to block this merger: the ideal remedy to the merger is indeed no merger at all. Simple as that really, like it or not.

[airazurxtror]

I, too, hope that the EU will block that merger.
Ryanair has nothing to gain by being polluted with a high-cost carrier where the unions are at the helm.
Ryanair has to remain focused on target - remain the best ULCC in Europe - and sell its share in Aer Lingus with a good profit.

[RoMax]

I, too, hope that the EU will block that merger.
Ryanair has nothing to gain by being polluted with a high-cost carrier where the unions are at the helm.
Ryanair has to remain focused on target - remain the best ULCC in Europe - and sell its share in Aer Lingus with a good profit.

I'm glad that at least one RYR-fan thinks beyond: "Oh I like, RYR will be even bigger"! And for a matter of fact, I agree. I don't believe RYR should interfere with semi-full service...

[sn26567]

Ryanair’s Aer Lingus remedies rejected

The EU is to serve formal objections against Ryanair’s third proposed takeover of Aer Lingus, after Europe’s largest low-cost carrier by revenues failed to offer concessions that address all Brussels’ competition concerns about the deal.

The European Commission has made it clear that it will reject what Michael O’Leary, Ryanair’s chief executive, described as a “radical” and “unprecedented” remedies package to secure regulatory approval.

According to people involved in the talks, Ryanair has been told that the remedies package falls short of what is required to eliminate competition concerns on all routes where the merged Irish carrier would enjoy a dominant position.

More from The Financial Times

[sean1982]

Bad news for aer lingus, FR are gonna make them bleed now

[Inquirer]

Bad news for aer lingus, FR are gonna make them bleed now

Why would it be bad news for them?
Aer Lingus are a profitable airline and they have a shareholdership which is predominantly against a take-over: they'll be just fine on their own in the long run.

Unless you think Ryanair is trying to take over Aer Lingus for no good reason whatsoever and are happy to see this nonsense is (finally?) over, this is really bad news for Ryanair, because it means they remain locked into their market which targets what I'd call no or very low added value seeking passengers only.

I know this is a profitable market too, but I am getting a strong feeling Ryan Air are starting to understand they are more than just a little bit cornered in being king of this market and would love to break out and head out towards the much bigger and also more luctrative markets just above theirs in which the higher quality LoCo's like Easyjet/germanwings etc are active, i.e. that of flights aimed at price conscious passengers who fly to generate added value for themselves or their employer rather than for their own leisure and as such are willing to pay a modest but significant premium over what a Ryanair ticket would cost them on condition their flight leaves at the time of their liking and heads to the airport of their liking.

You see, it's not because people don't want to pay for luxurious frills like champagne or caviar any longer, that they also want to accept low frequencies, poor schedules and longer ground transportation times. My personal feeling is that the majority of people -especially those flying frequently- do not want to accept all that and that's bad news for ryanair in the long run, hence their plan to take control of Aer Lingus and use it as their premium brand to fight the likes of Easyjet or Germanwings with. Being blocked to do so by the EU, is a significant setback to their long term growth plans, but was perfectly predictable.

[sean1982]

FR is allready planning the type of operation you just described , and this will be done in spite of aer lingus. So bad news for them, financially they will never be able too match FR

[Inquirer]

Bad news for them, financially they will never be able too match FR

Why would they want to match them?

Aer Lingus does not want of Ryanair, nor does it need them, so unless you explain why it is bad news for them, I am afraid you are just wishing this to be as bad news for them as it is to ryan air.

[RoMax]

You also realise RYR is running out of 738 orders and is now desperate searching for ways to continue expanding? RYR was too stubborn when they wanted to place a new order for the 737 as Boeing didn't want to give away their 737's away for free while RYR wanted to force Boeing into certifying things no other customer would ever want (making it damn expensive for Boeing).
Airbus never wanted RYR and that Chinese thing is still years away (and unless RYR gives in on their demands, a new order for the 737(MAX) will never become reality).

All these recent things like taking over Aer Lingus, the aggressive pulling back on certain markets blaming the local authorities, while expanding in their key markets, wanting Boeing to certify stand-up places in their 737's,... That's all just because they are close to the time they're running out of fresh 738's comming in. They can't keep up with their aggresive expansion anymore, tough they try desperate to keep up with it. (they always wanted EI, but now it's even more important to them as it's key to their planned expansion plan) If RYR wants to destroy Aer Lingus, fine, but that will come at the cost of another market.

[airazurxtror]

http://www.ryanair.com/ie/news/ryanair- ... ing-merger

Ryanair, Europe’s only ultra low fares airline, today (12 Nov) welcomed the announcement by IAG/Iberia that it intends to acquire Vueling, as the consolidation of Europe’s airlines continues.
This latest airline merger mirrors the EU Commission’s Phase 1 approved merger of IAG/British Airways with British Midland (in the UK) in March 2012, Aegean’s recent takeover offer for Olympic in Greece and Ryanair’s offer for Aer Lingus, which is currently being reviewed by the EU Competition Authorities.
IAG’s announcement that it is to cut 4,500 jobs at Iberia further demonstrates the changing landscape of Europe’s aviation industry and the need for continuing restructuring and reform among Europe’s high fares former flag carriers who, like Aer Lingus, cannot survive as independent airlines.
As Europe’s flag carrier airlines continue to consolidate Ryanair believes that its offer for Aer Lingus should be approved by the EU Competition Authorities if they follow – fairly – the precedent set in the BA/BMI merger and last week’s takeover of Vueling in Spain by BA/IAG. These are all inevitable steps in the consolidation process of Europe’s high fares former flag carrier airlines.”

[RoMax]

I agree Aer Lingus can not continue to survive on their own (short term is no reall problem, but they'll have difficulties to finance big fleet replacement programs and future expansion without a stronger partner). But isn't it clear EI doesn't want a future with RYR. All the efforts of the airline in the past years to restore a suitable business strategy as full service carrier will be undone by RYR. Besides that the take-over will almost certainly include reducing the total staff of RYR/EI in Ireland, whatever RYR tries to promise (not really something the EU wants either in the current situation). And there are many more aspects why EI, Ireland, Europe would be against this take-over.

[sn26567]

Ryanair can still try to sweeten its bid in order to make it palatable for the EU. At any time. They don't have to wait another five years.

Ryanair said they proposed remedies for routes covered by both itself and Aer Lingus. They said they had several candidates to take over such routes, but they did not disclose any names to the public, it was only leaked that British Airways was one of the candidates. A little bit short! I'm not surprised that the EU rejected the bid. In the other mergers mentioned by Ryanair, there were substantial concessions by the company taking over a rival. I don't see this for Ryanair...

[airazurxtror]

I'm not surprised that the EU rejected the bid.

The Financial Times has rejected the bid, but what about the EC ?
The EC had until 16 january 2013 to take a decision. If the EC has already taken the decision, can you give us a reference in order to see its full discussion of RYR arguments ?


http://europa.eu/rapid/press-release_IP-12-921_en.htm
The European Commission has opened an in-depth investigation (phase II) under the EU Merger Regulation into the proposed acquisition of Aer Lingus by the low cost carrier Ryanair, which was notified to the Commission on 24 July 2012. Both are major players in the Irish passenger air transport services market.
The Commission will now investigate the proposed merger in-depth to determine whether these initial concerns are confirmed or not. The opening of this in-depth inquiry does not prejudge the result of the investigation. The Commission now has 90 working days, until 16 January 2013, to take a decision on whether the proposed transaction would significantly impede effective competition in the European Economic Area (EEA).

[sean1982]

Inquirer,

Ei does not have deep pockets to finance a fleet renewal/expansion and their equipment is ageing. If FR can buy them that problem will be solved, and probably their long haul side will become the pinnacle of their operation, where FR and EI short haul would be feeding into. If EU blocks the take over, FR will simply put X amount of planes extra in Dubling, fly them on the exact same routes with lower prices and same type of service for as long as they need untill EI goes on their knees (and with the deep pockets they have, they can keep this game up for a long time) Now, what would be the best solution do you think? I'm not wishing anything, this is the reality

[Inquirer]

If EU blocks the take over, FR will simply put X amount of planes extra in Dubling, fly them on the exact same routes with lower prices and same type of service for as long as they need untill EI goes on their knees

So ryanair is going to operate to say LHR, FRA, MUC, CPH, VIE, ZRH and other primary airports multiple times daily (good luck getting in, I'd say), with a product that is much improved over what they are about now (think full ticket flexibility, think rebooking onto other airlines, think lounge access etc)?

I know you pretty much breathe your company and that's fine for me, but seriously: ryanair would be idiots if they transform their own successful product into one matching that of Aer Lingus and if they don't they won't be able to harm Aer Lingus much more than they already do now: it's not like they have been very kind to the airline they hold up to what... 30% of... up till now, have they?

My personal view on this all is that DUB probably is the first place in Europe where it is demonstrated to all to see that the ryanair model comes with certain insurmountable limitations too which makes it durably inattrative to a group of passengers large enough to form a viable basis for a competitor to live and thrive from, pretty much right next to them even!
I suppose THAT is the main reason why ryanair so vehemently wants to take Aer Lingus over, although it may be already too late, not only because Easyjet is demonstrating the success of the alternative LoCo approach on a daily basis too, it seems the notion that you needn't become a Ryanair clone to be successful on shorthaul in future has finally grown on others too: the push of Lufthansa towards Germanwings for their non-hubbing shorthaul flights is another clear sign of this.

Besides, who says Aer Lingus have to remain alone? They can very well find a strategic partner more suitable to them, to which the EU will not object. The world of aviation is bigger than just ryanair, I'd be tempted to point out to you, so any further consolidation in Europe isn't necesarilly limited to either being absorbed by ryanair or total demise.

Anyway, I am beginning to sound like the corporate strategy consultant I used to be in my previous professional life. Enough said about this topic.

[airazurxtror]

http://www.independent.ie/business/iris ... 94575.html

Ryanair says it remains confident that the European Commission will approve its €694m acquisition of Aer Lingus despite Brussels having issued a so-called 'statement of objections' to the carrier.
The statement of objections state that the remedies Ryanair proposed to the EU's competition commission to secure approval for the takeover aren't yet sufficient to persuade it to approve a possible takeover. Ryanair confirmed yesterday that it received the statement on Tuesday.
It described the statement of objections received from the EU as a "standard procedural step" in intensive phase two EU merger reviews.
"Ryanair expects that the Commission will shortly market-test this transformational remedies-package and remains confident that its offer for Aer Lingus will receive competition clearance following any fair assessment by the Commission," the airline said.

[airazurxtror]

http://www.independent.ie/business/iris ... 18430.html

EU Competition Commissioner Mr Almunia's office has been liaising with a small Ryanair team in the past few months as the airline tries to persuade mandarins that it should be allowed to buy Aer Lingus.
"They are not yet at the critical stage," said Mr Almunia. A final decision isn't due until February 6.

Michael O'Leary again predicted this week that Aer Lingus would be broken up if Ryanair failed to buy it this time around.