Varadkar: State to sell Aer Lingus stake

[statsman]

AL are the 4th largest holder(I think) of Heathrow slots, and have a relatively high no. of transfer pax onto longhaul flights - Rumours of BA interest have been rumbling on for years but if the price was low enough it would make sense as a defensive buy. It will be very interesting to see what happens to British Midland over the next year or so, Lufthansa want to sell their stake.

If it was a majority holding.

[gijoe]

Not being smart, but how would they get the slots, given they will only being able to buy a minority shareholding?

They could buy the stake (cheaply) as leverage to do a deal with Ryanair to give up their 25% plus cash for the Heathrow slots. That's only plausible reason anyone would buy into AL.

[Nebuchadnezzar]

AL has the 3rd biggest number of slots at Heathrow after BA and BMI.

I stand corrected ,tx, I thought Virgin were 3rd.

Al slots already serve BA interests through the ongoing code sharing(inspite of pulling out of Oneworld) so BA would be keen to protect those slots even with Irish Govt. terms and conditions attached.

[Harmonica]

Er, is not the first rule of selling a stake that you dont tell anybody you are selling.

The other people with shares will be now dumping thier shares waiting for the anticipated sell-off and when the government sells off it will get a much worse price per share?

Is this the Varadkar bottom?

The government would have to announce it sooner or later. It is not like they could just sell the shares without making a public announcement.

[Spanner Island]

Not being smart, but how would they get the slots, given they will only being able to buy a minority shareholding?

The Commission can't indefinitely refuse to allow Aer Lingus be sold and traded just because they don't like Ryanair.

The Commissions record on aviation in horrendous anyway...

In France via blind eyes from the Commission and collusion by French courts over years have enabled Air France to develop a dominant position at the expense of competitors. It's no coincidence that France is the only major EU country without a significant Low Cost Airline.

And again Alitalia received billions in illegal aid since deregulation while the Commission did nothing.

The Government getting rid of 25% means Aer Lingus will be in play again whether the Commission likes it or not...

And if this is the case and the shares are cheap (which they are), then BA or Lufthansa or anyone else who might like the Heathrow slots could use the opportunity to get their foot in the Aer Lingus door...

It may not happen of course... which will simply mean the status quo continues...

[CookieMonster]

The Commission can't indefinitely refuse to allow Aer Lingus be sold and traded just because they don't like Ryanair.

Yes they can. They are The Commission and they don't like him. He's just a jumped up little mouthpiece from Ireland. O'Leary is well aware of it too. He admitted his Lisbon stance was only done to suck up to the Commission and even then they screwed him.

[Spanner Island]

It will be very interesting to see what happens to British Midland over the next year or so, Lufthansa want to sell their stake.

I don't think they do want to sell...

They own bmi outright and are restructuring it.

[feedmelies]

Er, is not the first rule of selling a stake that you dont tell anybody you are selling.

The other people with shares will be now dumping thier shares waiting for the anticipated sell-off and when the government sells off it will get a much worse price per share?

Is this the Varadkar bottom?

Maybe they're going to buy it all up and become majority shareholders again.

[Spanner Island]

Yes they can. They are The Commission and they don't like him. He's just a jumped up little mouthpiece from Ireland. O'Leary is well aware of it too. He admitted his Lisbon stance was only done to suck up to the Commission and even then they screwed him.

I'm not saying they'll allow Ryanair take it...

Aer Lingus will be attractive to others who may well be prepared to invest for the the long term without any immediate benefits...

And whether you love him or loathe him, O'Leary will always have a price at which he'll get out of Aer Lingus...

It's likely be an extortionate price, but a price nonetheless...

[hiding behind a poster]

Indeed, but it's hard to see who else would want it.

Any number of other airlines would want it, especially at the current share price.