Ryanair has formally requested an extraordinary general meeting of Aer Lingus shareholders.
Ryanair wants the meeting to discuss the issue of Aer Lingus's agreements with chief executive Dermot Mannion and chief financial officer Sean Coyle in the event of a takeover of the airline.
The move comes after it emerged that Aer Lingus shareholders had shown almost no desire to accept a takeover offer by Ryanair.
In its defence document against Ryanair's takeover offer, published last month, Aer Lingus said each executive director could terminate employment with it with 30 days notice at any time within six months after a change in control of the company. The director concerned would then be entitled to a settlement payment of two times the total of his salary, bonus and pension contribution in the previous year.
This would happen, according to Aer Lingus, if the executive 'has reasonable grounds to contend that the change in control has resulted or will result in a diminution of his powers, duties or functions in relation to the company'.
Ryanair claims this would award Mr Mannion a payment of up to €2.8m, which it claims is 'excessive and indefensible'. Ryanair says such arrangements must be approved in advance by company shareholders.
It is calling for the arrangements to be revoked and for the Aer Lingus board to be censured.
Little Aer Lingus interest in takeover
Aer Lingus shareholders have shown almost no desire for a takeover by Ryanair.
In a statement this morning, Ryanair said that by yesterday afternoon investors holding 29.83% of Aer Lingus shares had backed its cash offer of €748m. This includes its own shareholding of 29.82%.
Ryanair said that its offer would now be extended until February 13.
Lower fuel prices to boost Aer Lingus
Meanwhile, Ryanair has confirmed that it held a meeting yesterday with Tailwind Nominees, which owns around 2% of Aer Lingus on behalf of pilots.
Aer Lingus management had urged shareholders not to back the takeover when it was launched last month. Ryanair's bid is worth only half the €1.48 billion the airline had offered for Aer Lingus in an unsuccessful takeover attempt in October 2006.
This earlier takeover bid was blocked by the European Union on competition grounds.
Ryanair's 2008 passengers numbers up 18%
Ryanair also said todat that it carried almost 58 million passengers in 2008, an increase of 8 million, or 18%, on the previous year.
The airline said it carried over five million passengers in one month for the first time in May, while August was its busiest month with over 5.7 million passengers flying with the airline.
Ryanair said it was now aiming to carry over 65 million passengers this year.
In December 2008, 4.4 million passengers flew with Ryanair, up 11% on the same month in 2007. Its load factor - or how many seats were filled on each flight - was unchanged at 79%.
