Ryanair to buy Aer Lingus ?

Bob_the_Saver

http://www.bbc.co.uk/news/business-18511024

bagand96

Other than his own vanity and to prove a point I cannot fathom why O'Lairey is so desperate to buy Aer Lingus.

They are loss making, have a totally different business model, operate totally different aircraft types (not that Ryanair have a shortage of aircraft). Any buyer would also inherit a world of labour and pension problems.

Personal crusades seldom make good business decisions.

Bob_the_Saver

bagand96 wrote: »

Other than his own vanity and to prove a point I cannot fathom why O'Lairey is so desperate to buy Aer Lingus.

They are loss making, have a totally different business model, operate totally different aircraft types (not that Ryanair have a shortage of aircraft). Any buyer would also inherit a world of labour and pension problems.

Personal crusades seldom make good business decisions.

I agree............

Mr_Wang

bagand96 wrote: »

Other than his own vanity and to prove a point I cannot fathom why O'Lairey is so desperate to buy Aer Lingus.

They are loss making, have a totally different business model, operate totally different aircraft types (not that Ryanair have a shortage of aircraft). Any buyer would also inherit a world of labour and pension problems.

Personal crusades seldom make good business decisions.

Simple.... Transatlantic routes.

Bob_the_Saver

Mr_Wang wrote: »

Simple.... Transatlantic routes.

With open skies why not just buy/lease a couple of bigger Boeings. I'm sure he could drum up enough publicity to fill them without all the baggage the comes with Air Fungus (pardon the pun).

Mr_Wang

Bob_the_Saver wrote: »

With open skies why not just buy/lease a couple of bigger Boeings. I'm sure he could drum up enough publicity to fill them without all the baggage the comes with Air Fungus (pardon the pun).

I seem to recall reading back when he first tried this that key to the success of a transatlantic route was not necessarily the route, but more the slot.
Turning up with just one plane and a cheeky smile isn't going to get him anywhere, turning up with an already established transatlantic airline will give him the oomph to push for more in true O'Leary style.
He has been saying for years £50 flights to the US are not a thing of the past, but thing of the future.

Mr_Wang

As well it just occurred to me, with Ryanairs extensive network he could offer longhaul flights - and the connecting flights to avoid the UK air tax.

SaveTheEuro

bagand96 wrote: »

Other than his own vanity and to prove a point I cannot fathom why O'Lairey is so desperate to buy Aer Lingus.

They are loss making, have a totally different business model, operate totally different aircraft types (not that Ryanair have a shortage of aircraft). Any buyer would also inherit a world of labour and pension problems.

Personal crusades seldom make good business decisions.

The American market has to appeal. Imagine the custom that could be generated in New York alone. And Ryanair would be selling the Americans a network that could take them to virtually anywhere in Europe.

The Heathrow slots are also of enormous benefit. By ending the Aer Lingus flights between Heathrow and Ireland Ryanair would be able to sell off the Heathrow slots for a small fortune, or, maybe, use them for transatlantic services. Are Lingus flights from America could be heading for London rather than Dublin in future.

Doshwaster

Mr_Wang wrote: »

Simple.... Transatlantic routes.

The thought of the Ryanair model being applied to transatlantic routes makes the blood run cold. I've used Aer Lingus a few times for hops across the Pond and it was a decent services, especially with the immigration pre-clearance in Dublin.

Previously the Irish government has always blocked any merger/acquisition but at the moment they may just need the money.

bagand96

Not even O'Learey could make £50 transatlantic flights work with with Aer Lingus' cost base. They've only got 7 A330's too it's hardly going to worry the big players.

Also.. Connections? Goes against everything Ryanair is currently about and introduces more costs into the question. Avoiding APD is a red herring too as connecting flights out of the uk still have to pay APD at the rate applicable to the final destination.

Unless he really thinks people would plan long haul itineraries without the through-ticketing protections?

Of course he could be doing all this knowing he will once again be denied. It will however bump up the Aer Lingus share price so he could offload some of those shares he's got. That would just be cynical though. No press is bad press

SaveTheEuro

bagand96 wrote: »

They've only got 7 A330's too it's hardly going to worry the big players.

With the takeover of Buzz Ryanair got rid of all the planes for a new lot.