skip to main content

Ryanair makes new Aer Lingus EGM bid

Aer Lingus - New Ryanair resolution
Aer Lingus - New Ryanair resolution

Ryanair has made a fresh bid to force an extraordinary general meeting of Aer Lingus shareholders.

The airline, which holds a 29.4% shareholding, had asked Aer Lingus for the EGM, but Aer Lingus's board rejected the call on Friday.

Aer Lingus had said on Friday that the holding of an EGM would infringe Irish and EU competition law, as Ryanair's proposed resolutions were aimed at influencing its conduct as a competitor.

Ryanair's previous EGM proposals had included a call for Aer Lingus to switch its proposed Dublin-Gatwick routes to Belfast. Aer Lingus and Ryanair would be competing on the Dublin-Gatwick route.

Ryanair is now aiming to get round the competition issues by proposing a new resolution. This calls on Aer Lingus to maintain its Shannon-Heathrow service and 'explore the €4m a year of additional cost reductions recently identified by the Shannon Airport Authority'. The authority had proposed new discounts to Aer Lingus in an attempt to encourage it to keep the Heathrow service.

Ryanair chief executive Michael O'Leary claimed that the directors of Aer Lingus were in breach of their statutory duty in failing to call the EGM - and could find themselves personally liable for that failure.

Aer Lingus acknowleged that it had received the latest Ryanair letter and said it would respond in due course.

Transport Minister Noel Dempsey said the holding of the EGM was a matter for Aer LIngus and its board.

Meanwhile the Shannon Action group welcomed the call for an egm, though with reservations about Mr O'Leary's motives. They called for political action from TDs.