Aer Lingus is to restart flying from Shannon to London Heathrow from March 29, 2009. The airline says it will operate double daily flights to and from the Co Clare airport.
In a statement today, Aer Lingus also urged shareholders to reject the recent €1.40 per share offer for the airline from Ryanair, saying that the offer significantly undervalues the company.
It says the offer misrepresents 'the significant progress of Aer Lingus since its flotation in 2006 and seeks to underline its vibrant future as an independent airline'.
On Shannon, Aer Lingus says the decision to restart the route follows the recent agreements with staff to opt for alternative cost saving measures including work practice changes and new work agreements at Shannon, Cork and Dublin airports.
It had stopped the Heathrow route last January after nearly 60 years in operation and moved the service to Belfast International Airport.
Ryanair had promised to reopen the route should its €525m euro bid for Aer Lingus be successful.
Aer Lingus said the recent work changes - and the recent reduction in the price of fuel - have made the resumption of the service 'a reality'.
Meanwhile, in a letter to shareholders Aer Lingus Chairman Colm Barrington says that the company can not allow Ryanair to take Aer Lingus' superior brand and customer proposition at a price that fundamentally undervalues the business.
He points out that the airline has consistently generated high levels of return since its IPO in 2006 and added that he expects this to continue as the firm expands.
Mr Barrington tells shareholders that Aer Lingus has a strong balance sheet with total cash reserves of €1.3 billion and net cash of €803m. He points out that Ryanair wants to pay other shareholders €525m to get control of Aer Lingus in order to gain access to this €1.3 billion cash balance.
'For this reason alone, the offer is worthy of rejection,' he states. He says the offer does not consider the market value of the airline's fleet of €601m and also the value of its other assets, including the Heathrow slots.
Rejecting Ryanair's claims that Aer Lingus needs the Michael O'Leary-led airline, Mr Barrington says that Ryanair has no experience of managing a long-haul business or no experience of managing a unionised workforce.
'Ryanair's proposition is simple - it is opportunistically attempting to capitalise on current market fears and uncertainties to profit from our proven business model and gain access to our huge cash resources and valuable assets. Do no let this rip-off happen,' the Chairman urges.
He says that Aer Lingus shareholders should ignore Ryanair's 'threats, contradictions and insinuations'.
'The directors believe that Ryanair's offer does not reflect the true value of the company based on its market position, its fleet, its cash and its brand. These assets will produce greater value for our shareholders in the future,' he says.
In a response, Ryanair chief executive Michael O'Leary questioned the Aer Lingus document, claiming that the airline would report 'substantial net losses' this year rather than a profit. He accused Aer Lingus of misleading shareholders.
Aer Lingus shares closed up four cent at €1.48 in Dublin.
