Response to Aer Lingus Result
RYANAIR CALLS ON AER LINGUS TO APOLOGISE FOR MISLEADING SHAREHOLDERS AND THE STOCK EXCHANGE ABOUT ITS LOSSES IN 2008 AND AGAIN IN 2009
Ryanair, Ireland's favourite airline today (Wednesday, 11th March 2009) called on Aer Lingus Chairman Colm Barrington to apologise for misleading Aer Lingus shareholders and the Stock Exchange in its 22 December Defence Document - published just 9 days before the year end - in which Aer Lingus made the following claims - which have now been proven to be untrue by the enormous losses announced this morning by Aer Lingus for 2008 and again in 2009.
In Aer Lingus's 22 December Defence Document - published just 10 weeks ago,
Aer Lingus Chairman Colm Barrington made the following false claims:
-
'Despite these extremely challenging conditions we expect to achieve profit overall in 2008'.
This morning Aer Lingus announced an after tax loss of €108m for 2008, clearly proving that Aer Lingus misled shareholders and the Stock Exchange in its Defence Document.
2. 'We expect that significantly reduced fuel prices and a number of management cost reduction initiatives will enable Aer Lingus to continue to enhance profitability in 2009 and beyond'.
In this morning's results Aer Lingus confirmed that 'In 2009 Aer Lingus will experience a larger operating loss than in 2008 and the Group is unlikely to meet its previous guidance of a pre-tax profit in 2009'. This morning's results confirm that Aer Lingus misled its shareholders and the Stock Exchange about its claims to 'enhance profitability in 2009'.
3. 'Aer Lingus is and will be profitable'.
This morning's confirmed losses in 2008 and larger operating losses in 2009 proves that these claims - made just 10 weeks ago - were false.
4. 'Our long-haul business also continues to grow'.
Aer Lingus' recent traffic figures which show a consistent reduction in monthly long-haul traffic of over 10% proves this Defence Document claim was also false.
Ryanair called today on Aer Lingus Chairman Colm Barrington and its Board to explain to shareholders why they continue to preside over an enormous collapse in shareholder value and why they recommended rejection of Ryanair's €1.40 per share offer just 10 weeks ago, at a time when they were presiding over enormous losses in 2008, increased operating losses in 2009, and a share price which has collapsed by more than 50% from €1.40 to less than 70 cents today.
Speaking today Ryanair's Michael O'Leary said:
'Today's results from Aer Lingus prove conclusively that the Chairman Colm Barrington, Board and Management of Aer Lingus misled shareholders and the Stock Exchange in their Defence Document of just 10 weeks ago. Shareholders are entitled to ask why there is no mention in today's results about restoring or improving shareholder value. It would appear that the Board and Management of Aer Lingus care more about lining their own pockets with excessive and unjustified Director fees and multi million euro resignation bonuses for failed management than they do about growing Aer Lingus, delivering profitability or shareholder value.
'Irish taxpayers are entitled to ask the Department of Transport why they rejected Ryanair's €1.40 offer and claimed that 'The €1.40 offer for Ryanair greatly undervalues Aer Lingus', when just ten weeks later the taxpayer investment in Aer Lingus has collapsed by more than 50%. What does this say about the Department of Transport's financial judgement?
'We intend to submit formal complaints to the London and Irish Stock Exchange, the Takeover Panel and the Financial Services Regulator about the patently false claims and misleading advice given by Aer Lingus to shareholders in its 22 December Defence Document.
'Consumers can celebrate Aer Lingus's continuing losses and failure as Ryanair this morning released 108,000 free seats - 1,000 seats for every €1m after tax losses announced by Aer Lingus this morning - for travel in March and returning in the first week of April. These will be the last free flights on Ryanair from Ireland before the Government introduces its crazy €10 tourist tax in Ireland'.
ENDS. Wednesday, 11th March 2009
For further information
please contact:
Stephen McNamara Pauline McAlester
Ryanair Ltd Murray Consultants
Tel: +353-1-8121212 Tel. +353-1-4980300
This information is provided by RNS
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