COMPETITORS - Aer Lingus

Aer Lingus is the national airline of Ireland. Based in Dublin, it operates 35 Airbus Aircraft serving Europe, North America and the Middle East. The airline is 28% owned by the Irish government; it was floated on the Dublin and London Stock Exchanges on 2 October 2006, following prior government approval (the government previously owned 85% of the airline). Aer Lingus is a member of the Oneworld airline alliance, though has announced its intention to leave on 1 April 2007.[1] On 6 February 2007, the airline announced its intention to form a new alliance with JetBlue Airways. The company employs 4,000 people and has revenue of €1,115.8 million as of 2006. Its slogan is Low Fares, Way Better. Aer Lingus transferred 8.6 million passengers in 2006.

On 5 October 2006 Ryanair launched a €1.48bn bid to buy Aer Lingus. Ryanair CEO Michael O'Leary said the move was a "unique opportunity" to form an Irish airline. The "new" airline would carry over 50 million passengers a year. Ryanair said it had bought a 16% stake in Aer Lingus and was offering €2.80 per share for remaining shares.[6] On the same day Aer Lingus rejected Ryanair's takeover bid.[7] On 5 October, Ryanair confirmed it had raised its stake to 19.2%, and said it had no problem in the Irish Government keeping its 28.3%. There were also reports in the Irish Times that the Government would possibly seek judgement from the courts, and referral to competition authorities in Dublin - although this would be automatic under European regulation, as the combined group would control 78% of the Dublin - London passenger air traffic.