Ryanair said today it has acquired more shares in Aer Lingus and it now owns 29.4% of the airline.
In a statement to the Irish Stock Exchange Ryanair said it has acquired a further 4% stake in Aer Lingus.
'These new shares were acquired at or less than €2.45 per share which lowers the average cost of Ryanair's shares in Aer Lingus', the airline said.
The purchase makes Ryanair the largest shareholder in Aer Lingus, ahead of the Government, which owns 25%, and the employee share ownership trust, which own 15%.
It was reported last week that Ryanair had increased its stake to 28%'.
Earlier this month Aer Lingus confirmed it will set up its first base outside the Republic at Belfast International Airport with plans to move the current Heathrow service from Shannon to Belfast.
Ryanair said today that its decision to increase its stake to 29.4% will make it easier for the other large Aer Lingus shareholders to support the fourthcoming EGM motion to save the Shannon-Heathrow route.
A Ryanair spokesman said if Ryanair abstains from voting at the EGM then the Government and the ESOT will have a clear majority and can vote as shareholders to save the Shannon-Heathrow route.
He said that should the Government also decide to abstain then the ESOT and other Aer Lingus employees should have sufficient votes between them to comprise a majority of the remaining 45% of shareholders.
Ryanair said it believes that the interests of Aer Lingus shareholders can best be secured if Aer Lingus retains the profitable Shannon-Heathrow route, addresses the €4 million of cost savings identified by Shannon Airport to further increase profitability, and at the same time uses some of its other Heathrow or Gatwick slots to launch its Belfast-London route.
'Aer Lingus can and should develop Belfast, but without abandoning Shannon-Heathrow,' Ryanair's statement said.
Ryanair shares closed up eight cents at €5.01 in Dublin.
