"Very Concerned" at ?32.5M Provision in Aer Lingus

RNS Number : 8424B

Ryanair Holdings PLC

25 February 2011

 



RYANAIR "VERY CONCERNED" AT LATEST €32.5M PROVISION IN AER LINGUS

Ryanair, today (25^th Feb) said it was very concerned at the announcement by Aer Lingus of an exceptional provision of €32.5m relating to tax, interest and penalties arising from a redundancy and rehiring programme negotiated with Govt in 2008 and implemented in 2009.  This payment comes on the back of a still unexplained €25.3m gift to the ESOT on the 22^nd December last, and brings to over €57m the quantum of Aer Lingus shareholder funds which have been paid out to current and former staff over the past three months.

Ryanair believes that the €32.5m provision raises a number of very serious questions, which all Aer Lingus shareholders are entitled to receive answers to as follows:

1.   Who in Aer Lingus negotiated this redundancy and rehire programme with Govt in 2008 and 2009?

2.   Which Ministers, Departments and officials were involved in these discussion/negotiations?

3.   Why did Aer Lingus believe that it had no tax liabilities for the original deal?

4.   Was Aer Lingus Director David Beggs involved in the negotiations or the conclusion of this redundancy and rehire programme?

5.   If Mr Beggs was involved in the discussion, negotiation or conclusion of this redundancy and rehire programme, is his position on the Board of Aer Lingus tenable?

6.   Why, if this redundancy and rehire programme was agreed with the Irish Govt, is Aer Lingus not taking legal action against the Irish Govt, instead of writing off another €32.5m of shareholder funds?

7.   Why was the €25.3m cash gift to the ESOT on 22^nd Dec last not presented to shareholders for approval before being paid?

8.   Is this further €32.5m exceptional cost the result of a cosy or crony relationship between Aer Lingus, the Govt?

9.   Are there any more multi-million euro payments and/or gifts to Aer Lingus staff or former staff envisaged?

10. What is the up-to-date position on the Aer Lingus pension scheme deficit?  Has the company confirmed with its employees that this is a defined contribution scheme, rather than a defined benefit scheme?

Ryanair believes that the Board of Aer Lingus should now provide its shareholders with detailed answers to the above questions and we hope in the interests of transparency that they will do so, before any more multi-million payments are made by Aer Lingus from its shareholder funds.

For further information

please contact:                       Stephen McNamara              Joe Carmody

                                                Ryanair Ltd                            Edelman

                                                Tel: [phone]              Tel. [phone]

 

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