Tag Archives: Aer Lingus

IAG reveals failed Aer Lingus bid

International Airlines Group (IAG) (London), the parent company of British Airways (Heathrow), Iberia (Madrid) and low cost carrier Vueling Airlines (Barcelona), has revealed that the board of Aer Lingus (Dublin) has rejected a potential takeover attempt.

IAG confirmed in a stock exchange disclosure it had โ€œsubmitted a proposalโ€ to make an offer for Aer Lingus, but it added that this was โ€œrejected by the board of Aer Lingus.โ€

IAG added: โ€œThere can be no certainty that any further proposal or offer will be forthcoming. A further statement will be made if and when appropriate,โ€.

โ€œThe board has reviewed the Proposal and believes that it fundamentally undervalues Aer Lingus and its attractive prospects. Accordingly, the Proposal was rejected on 16 December 2014,โ€ Aer Lingus said in a stock market disclosure. โ€œShareholders are strongly advised to take no action.โ€

This is not the first time Aer Lingus has been the target of a takeover bid. Irish competitor Ryanair (Dublin) has made several attempts to acquire its fellow Irish carrier, but each of these efforts has been blocked on competition grounds.

Last September, a UK Competition Commission (UKCC) investigation into these unsuccessful Ryanair bids revealed that Aer Lingus was looking to combine with another carrier in 2012 and has more recently explored a variety of merger and acquisition scenarios. They also revealed that several sets of talks relating to Aer Lingus acquiring, merging and forming strategic initiatives with other airlines.

Ryanair was ordered to sell its 29.8% stake in Aer Lingus down to 5% by the UKCC, partly based on concerns the shareholding could jeopardize Aer Lingusโ€™ consolidation with other carriers. Ryanair responded by putting its entire stake up for sale, with certain conditions. More recently Ryanair CEO Michael Oโ€™Leary has bemoaned a total lack of interest in the Aer Lingus stake.

Oโ€™Leary, speaking at the release of Ryanairโ€™s first-quarter results this summer, said: โ€œWeโ€™ve had depressingly received no interest in Aer Lingus stake, which has been up for sale for about 18 months.โ€

The takeover bid from IAG could have could have valued the Republicโ€™s flag carrier at at least โ‚ฌ1 billion, industry sources estimate. Earlier, Aer Lingus shares had jumped 14% after the Financial Times reported that IAG was considering a bid.

Reported by Assistant Editor Oliver Wilcock from Manchester.

Copyright Photo: SPA/AirlinersGallery.com. Aer Lingus A320-214 EI-DEN (msn 2432) approaches the runway in London (Heathrow).

Aer Lingus aircraft slide show:ย AG Slide Show

Aer Lingus shareholders approve โ‚ฌ191 million ($237 million) payment to the new pension fund

Aer Lingus‘ (Dublin) shareholders have voted in favor of a deal to address the airlineโ€™s pension deficit, which was previously described as โ€œa real and significant risk to the success of the company.โ€

A proposal to plough โ‚ฌ190.7 million ($237.6 million) into the pensions scheme, which has taken four years to finalize, was put to shareholders during an extraordinary general meeting December 10.

In a stock exchange disclosure, Aer Lingus said the motion had been passed, with 421,859,027 votes in favor and 1,942,425 against.

The numbers indicate that the holders of close to 80% of the companyโ€™s shares voted, while the margin of the vote itself was 99.55% in favor and 0.45 against.

This rubber stamp means the Irish carrier can now proceed with the implementation of the IASS proposal, which will avoid labor conflict, give financial and legal clarity, and stabilize staff costs.

Aer Lingus and Dublin Airport Authority jointly operate IASS, which has an estimated โ‚ฌ750 million deficit. Part of the proposals for tackling the problem involve transferring staff to a defined benefit scheme, to which both companies will contribute lump sums totaling โ‚ฌ263 million.

The vote followed a stormy meeting at the Dublin Airport Radisson, which was nearly disrupted by protesting retired workers, who at one point surrounded part of the conference room in which it was held and banged on the windows.

A number of former staff attending the meeting itself also expressed their anger to Aer Lingus chairman, Colm Barrington, and claimed the schemeโ€™s trustees had refused to deal with them while the companyโ€™s management were ignoring their plight.

They say that they are facing the loss of up to six weeks income a-year under the plan to restructure the insolvent scheme.

The pensioners have hired a legal team and are considering going to court. Leaving the meeting, retired Aer Lingus worker, Vincent McCabe, said โ€œwe will go to court if we have to go to courtโ€.

Speaking afterwards, Mr Barrington said that Aer Lingus had honored all its obligations:

โ€œWe have got to get the situation resolved and get industrial peace,โ€ he added, referring to the strikes and other unrest that have been a feature of the pension dispute.

Read the full story for the Irish Times: CLICK HERE

Reported by Assistant Editor Oliver Wilcock from Manchester.

Copyright Photo: SPA/AirlinersGallery.com. Airbus A320-214 EI-DVM (msn 4634) in the 1963 retro livery arrives in London (Heathrow).

Aer Lingus aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Europe-1/Airlines-Europe-1/Aer-Lingus

Beleaguered Malaysia Airlines choses Aer Lingus CEO Christoph Mueller as its new leader

Aer Lingus CEO Christoph Mueller

Malaysia Airlines (Kuala Lumpur) is suffering as it continues to bleed money in the face of two air disasters this year. The beleaguered airline has turned to the west for its new chief executive officer. Aer Lingus boss Christoph Mueller has been selected to become the new CEO of Malaysia Airlines. Mr. Mueller will become the first foreigner to run the flag carrier. He will join the airline sometime in the first half of 2015.

Christoph Mueller CEO Aer Lingus

Biography of CEO Christoph Mueller (from Aer Lingus):

Christoph Mueller joined Aer Lingus as its Chief Executive Officer (CEO) in September 2009. He previously held the position of Executive Aviation Director at TUI Travel plc., a FTSE 100 company. In January 2006, Christoph joined the Executive Committee of TUI AG, a DAX 30 company with responsibility for its flight division.

He served as the Chief Financial Officer of DHL Worldwide from 2002 to 2004 and became a member of the Executive Committee of Deutsche Post AG in 2004 after the acquisition of DHL by Deutsche Post AG.

Christoph has extensive experience within the aviation industry, having held senior position in Daimler Benz Aerospace, having been Executive Vice President at Lufthansa AG and Chief Executive Officer of the Sabena Group.

In January of 2012 Christoph was appointed to the Board of Tourism Ireland, the organisation responsible for the international promotion of the island of Ireland as a tourism destination.

In March of 2013, Christoph was appointed to the role of Chairman of An Post.

He has an MBA from the University of Cologne and subsequently completed an Advanced Management Program at Harvard Business School.

Read the full story from the BBC: CLICK HERE

Images: Aer Lingus.

Malaysia Airlines aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Asia-2/Airlines-Asia2-FP/Malaysia-Airlines

Malaysia logo-1

Aer Lingus and Flybe begin a codeshare partnership

Aer Lingus (Dublin) has started a codeshare partnership with low-cost airline Flybe (Exeter). This partnership sees the EI code appear on the following five routes between Dublin and the United Kingdom per Airline Route. These codeshare services began on November 10, 2014.

Aer Lingus routes operated by Flybe:

Dublin โ€“ Donegal
Dublin โ€“ Exeter
Dublin โ€“ Inverness
Dublin โ€“ London Southend
Dublin โ€“ Southampton

Report by Assistant Editor Oliver Wilcock.

Today we welcome to the World Airline News Team, Assistant Editor Oliver Wilcock.ย Oliver Wilcock

Oliver will be focusing on the airlines of the United Kingdom and Ireland.

 

 

Copyright Photo: Antony J. Best/AirlinersGallery.com. Bombardier DHC-8-402 (Q400) G-JECY (msn 4157) of Flybe lands in Southampton.

Aer Lingus aircraft slide show:ย AG Slide Show

Flybe aircraft slide show:ย AG Slide Show

 

Aer Lingus’ third quarter operating profit increases almost 14% to $140.1 million

Aer Lingus (Dublin) reported an operating profit of โ‚ฌ112.9 million ($140.1 million) for the third quarter ending on ย September 30 2014, up 19 percent from the โ‚ฌ94.9 million ($117.7 million) reported a year ago.

This was the best third quarter financial report for the company since the financial crisis of 2008.

Read the full report: CLICK HERE

Copyright Photo: SPA/AirlinersGallery.com. Airbus A319-111 EI-EPU (msn 3102) approaches the runway at London (Heathrow).

Aer Lingus aircraft slide show:ย AG Slide Show

Michael O’Leary: Ryanair will benefit from struggling European carriers

Ryanair - Michael O'Leary (MF)

Ryanair’s (Dublin) flamboyant CEO expects his ultra low fare airline will benefit from pullbacks by some European carriers. O’Leary believes Scandinavian Airlines-SAS, Alitalia and Airberlin are carriers he expects to either shrink or merge according to this article by The Irish Times.

O’Leary also believes Aer Lingus (Ryanair owns a minority share), Iberia, Olympic Airlines and TAP Portugal also will face either cutbacks or consolidation.

O’Leary has also signed a contract extension with Ryanair through September 2019.

Read the full story: CLICK HERE

 

Virgin Atlantic to shut down Little Red next year

Virgin Atlantic Airways (London) is shutting down its Airbus A320 feeder operation operated by Aer Lingus (Dublin). The feeder flights known as “Little Red” will end on September 26, 2015. The operation currently feeds London (Heathrow) from Aberdeen, Edinburgh and Manchester. Manchester flights will end sooner on March 28, 2015.

The Little Red operation is flown by four wet leased Airbus A320s.

Aberdeen flights began on April 9, 2013
Edinburgh flights began on April 5, 2013
Manchester flights began on March 31, 2013

On October 6 the airline issued this statement:

Little Red was launched in March 2013 as an attempt to reintroduce consumer choice on key domestic services after British Airwaysโ€™ takeover of bmi gifted them a monopoly on these routes. Over the past eighteen months, Little Red has delivered for consumers, leading the way on customer service and on-time performance at Heathrow. Flying well over a million passengers between London, Scotland and Manchester, Little Red also offers convenient onward connections to the rest of Virgin Atlanticโ€™s worldwide network.

Bookings grew steadily for the service in the first part of 2014 with the airline enjoying excellent customer feedback. However the demand has been predominantly from point to point customers rather than connecting traffic. High levels of connections onto Virgin Atlanticโ€™s long haul network have always been important to the success of Little Red.

Chief Executive Craig Kreeger has committed to returning Virgin Atlantic to profit by the end of this year and the airline is on track to deliver that, however Little Red has unfortunately not been able to make a positive contribution to Virgin Atlanticโ€™s network.

Virgin Atlantic Chief Executive Craig Kreeger said:

โ€œLittle Red came about through an enduring passion at Virgin Atlantic to make a difference for our customers. We really wanted it to be a success and everyone involved worked extremely hard and has given it their best efforts.

โ€œIt was always a huge challenge on behalf of the consumer, as the totally inadequate number of slots made available by the European Commission did not deliver close to BAโ€™s network position, even when supplemented by our own slots to fly between Heathrow and Manchester. The time lag between the takeover of bmi and our entering the market also meant Little Red initially faced an uphill battle to win recognition and convert customers to its services.

โ€œWhile this challenged environment meant Little Red ultimately did not deliver the results we had hoped, this certainly will not dampen our enthusiasm to try new things in the future. We have always fought for what we believe is best for our customers and we will continue to do so.

โ€œWeโ€™re very grateful for all of the support and goodwill shown to Little Red in Scotland and Manchester, where we received a warm welcome. I would also like to personally thank the Little Red team who have been fantastic ambassadors providing exceptionally high levels of customer service. We look forward to continuing to work with the Little Red cabin crew as we will be offering them roles on our long haul operation when these services end.โ€

The President of Virgin Atlantic, Sir Richard Branson, said:

“When the competition authorities allowed British Airways to take over British Midland and all of its slots, we feared there was little we could do to challenge BAโ€™s huge domestic and European network built through decades of dominance.

โ€œTo remedy this, we were offered a meagre package of slots with a number of constraints on how to use them and we decided to lease a few planes on a short term basis to give it our best shot. The odds were stacked against us and sadly we just couldnโ€™t attract enough corporate business on these routes. We will stop flying the Little Red services between Manchester and London at the end of March 2015 and the Aberdeen and Edinburgh services at the end of September 2015.

โ€œThe team did their absolute best to make a go of it and I thank them all for their amazing efforts. In the meantime, keep flying on Little Red where you’ll continue to get amazing offers and great service.โ€

Virgin Atlantic would like to thank its customers and teams in Aberdeen, Edinburgh, Heathrow and Manchester as well as its partner Aer Lingus, for their loyalty and commitment to Little Red and looks forward to continuing to work with them on the service over the next 12 months.

Passengers can continue to book with Little Red with confidence until this time and frequent fliers will be able to enjoy special loyalty benefits for doing so. There will be an increased earning incentive per-sector as well as a significant reduction in the number of Flying Club miles needed to redeem a flight.

The airline remains committed to its operations in both Manchester and Scotland. Its existing services from Manchester to Orlando, Barbados and Las Vegas will continue, with the addition next summer of a new daily Virgin Atlantic flight between Manchester and Atlanta. In Scotland, the popular seasonal service from Glasgow to Orlando will continue with eight extra return flights just announced for summer 2015, alongside a new route between Glasgow and Las Vegas.

The decision on the airlineโ€™s short haul carrier follows a major review of Virgin Atlanticโ€™s wider network. Last month the airline announced a network update delivering five new daily transatlantic flights and an ambition to grow to record levels of sustained profitability by 2018. This will be supported by a major programme of work that will see ยฃ300m invested into customer experience.

Read the analysis by City Index: CLICK HERE

Copyright Photo: SPA/AirlinersGallery.com. Aer Lingus’Airbus A320-214 EI-DEI (msn 2374) in Virgin Atlantic’s colors arrives at London (Heathrow).

Virgin Atlantic:ย AG Slide Show

Aer Lingus to restore the Dublin-East Midlands route on February 4, 2015

Aer Lingus (Dublin) is restoring the Dublin-East Midlands route on February 4, 2015. The restored route will be operated daily by Stobart Air (formerly Aer Arann) (Dublin) ATR 72s as an Aer Lingus Regional carrier.

Read the full story from Dublin Airport: CLICK HERE

Copyright Photo: Rob Skinkis/AirlinersGallery.com. ATR 72-212A (ATR 72-500) EI-REL (msn 748) departs from Manchester.

Aer Lingus:ย AG Slide Show

Aer Lingus Regional-Aer Arann:ย AG Slide Show

 

Virgin Atlantic to operate the new Boeing 787-9 between London Heathrow and Newark, will it drop Little Red?

Virgin Atlantic 787-9 (10)(Flt)(Virgin Atlantic)(LR)

Virgin Atlantic Airways (London) is getting its first Boeing 787-9 Dreamliner (G-VAHH, msn 37967) later this month. The airline will also 264-seat introduce its new Boeing 787-9 Dreamliner on the London (Heathrow)-Newark route starting on January 19, 2015 per Airline Route. This will be the third route for the new type. The 787-9 will enter revenue service on October 28 on the London (Heathrow)-Boston route as previously reported.

Virgin Atlantic logo (large)

In other news, the airline is not commenting on media speculation that it may be considering dropping its Little Red (operated by Aer Lingus) operation due to poor loads.ย Little Red operates feeder flights from London (Heathrow) to Aberdeen, Edinburgh and Manchester.

Read the full story from The Telegraph: CLICK HERE

Image above: Virgin Atlantic.

Virgin Atlantic:ย AG Slide Show

Bottom Copyright Photo: Tony Storck/AirlinersGallery.com. Operated by Aer Lingus, Airbus A320-214 EI-EZV (msn 2001) of Little Red arrives at the London (Heathrow) hub.

Aer Lingus has its highest second quarter operating results since 2010, wants to expand to North America, especially Dallas/Fort Worth

Aer Lingus (Dublin) posted a first half net loss of โ‚ฌ12.3 million ($16.5 million), narrowed from a โ‚ฌ23.5 million ($31.5 million) net loss in the same period a year ago. This includes the highest second quarter operating result since 2010 despite a โ‚ฌ10 million negative effect of industrial action.

Read the full report: CLICK HERE

The airline has been very happy with the ย results of new service to San Francisco and Toronto and wants to further expand with new routes to North America. Dallas/Fort Worth is high on their list for new routes according to this article by the Irish Independent.

Read the full story: CLICK HERE

Copyright Photo: TMK Photography/AirlinersGallery.com. Aer Lingus is using Air Contractors Boeing 757-200s formerly operated by Finnair for the Toronto route. Boeing 757-2Q8 EI-LBR (msn 28167) taxies at Toronto (Pearson).

Aer Lingus:ย AG Slide Show