Aer Lingus shows further support for IAG takeover

Aer Lingus’ chairman has said there is ‘compelling strategic rationale’ behind International Airlines Group (IAG) taking over the Irish carrier.

Colm Barrington’s comments came after several meetings between the two after the Irish airline’s board had already supported the financial terms of IAG’s proposal, at €2.55 a share.

The airline has continued to push that it believes the financial terms are of the best interest to shareholders but still needs the acceptance of the Irish government and shareholder Ryanair Limited.

“Over recent weeks the board of Aer Lingus has listened carefully to the public debate which has taken place regarding IAG’s proposal. We have had further detailed discussions with IAG and the board has a greater understanding of IAG’s intentions for the future of Aer Lingus and the proposed commitments that IAG is prepared to make in relation to Aer Lingus,” said Barrington.

He added: “These discussions have further confirmed that it is clearly in IAG’s interests to continue to grow Aer Lingus within the IAG Group. The board’s view is therefore that a combination of Aer Lingus with IAG has a compelling strategic rationale and will deliver significant benefits for Aer Lingus, its employees, its customers and for Ireland.”

After setting out its proposal last month IAG also made several commitments including retaining Aer Lingus’ slots and transatlantic business, and would also retain its current brand and operations.

Aer Lingus has met with Ireland’s Minister for Transport, Tourism and Sport twice this week.

Barrington concluded:  “The strong view of the board of Aer Lingus is that the prospect of Aer Lingus being part of the IAG Group has a compelling commercial logic for Aer Lingus, has significantly positive benefits for Ireland and is strongly supportive of the Irish government’s two airline policy.”