The Government will only sell its 25% stake in Aer Lingus to a party that can guarantee its independence from Ryanair, the Aer Lingus chief executive said today.
In an interview with Reuters, Aer Lingus CEO Christoph Mueller said the Government would not sell its Aer Lingus stake, valued at around €150m, to Ryanair because it would crush competition. Ryanair already owns nearly 30% of Aer Lingus.
'The Government needs to make sure we are not taken over by Ryanair, because only two air carriers guarantee that the fares from London to Dublin remain very low,' Mueller told Reuters in an interview today.
'They will only sell to a party which guarantees the independence of Aer Lingus,' he added. He made his comments on the sidelines of an IBEC conference in Dublin today.
Aer Lingus has already fended off two hostile bids from Ryanair.
Britain's Office of Fair Trading launched an investigation last week into Ryanair's stake in Aer Lingus, which Ryanair's CEO Michael O'Leary subsequently called 'a wild goose chase'. Mueller said the probe was credible.
The Aer Lingus boss also said he was exploring closer links with an Asian airline to give the airline access to markets in the region.
'We are looking into more partnerships because we want to connect the world with Ireland and we still have a hole in Asia Pacific. We do not have an Asian partner, which we are seeking. We are talking now,' Mueller said, declining to give further details.
He added the partnership would not be sealed 'any time soon'.
Aer Lingus already has a partnership with United Airlines on long-haul flights between Europe and North America.
