RESPONSE TO AL CLOSURE
Ryanair Holdings PLC
14 August 2007
RYANAIR RESPONDS TO AER LINGUS
CLOSURE OF SHANNON-HEATHROW ROUTE
- THREE NEW LONDON FLIGHTS TO DELIVER 330,000 PAX P.A.
- REQUESTS AER LINGUS EGM TO RESTORE SHANNON-HEATHROW SERVICES
- OFFERS TO WITHDRAW EXTRA LONDON FLIGHTS IF AER LINGUS STAYS
Ryanair, Ireland's largest airline, held a press conference in Shannon Airport
this morning (Tuesday 14th August 2007) to announce that if Aer Lingus proceeds
with its plan to close the Shannon-Heathrow route and abandon 330,000 passengers
who currently use it, then Ryanair will provide 3 additional daily flights to
London to ensure Shannon Airport's capacity and traffic does not fall as a
result of this Aer Lingus closure.
The new flights include: - A fourth daily flight to London Stansted.
- A second daily flight to London Gatwick.
- A daily flight to London Luton.
Ryanair's London services will increase from 4 to 7 flights daily, providing
Shannon passengers with daily connections to 3 London airports including Gatwick
and Stansted, which offer more destinations and connections to Europe than
London Heathrow does presently.
SHANNON - LONDON ROUTE
Destination Departure Arrival
Stansted 06.35 08.00
Stansted 10.35 12.00 (new)
Luton 12.25 13.40 (new)
Gatwick 13.05 14.30
Stansted 16.20 17.45
Gatwick 19.50 21.15 (new)
Stansted 20.00 21.20
Ryanair also announced that it had written yesterday to Aer Lingus requesting
that an EGM of Aer Lingus be called, to allow Aer Lingus shareholders the
opportunity to exercise their statutory right to consider requesting the Board
and Management of Aer Lingus to reverse the Shannon closure decision and
maintain Aer Lingus's 4 daily flights between Shannon and Heathrow. Aer Lingus
have confirmed that its Shannon-Heathrow route is profitable and Ryanair
believes that by reducing its costs in Shannon Aer Lingus's profits can be
further increased in the interests of all Aer Lingus shareholders.
Ryanair has in its letter suggested that Aer Lingus consider using the recently
announced 4 daily Dublin-Gatwick flights as a suitable alternative for its new
Belfast base. This would allow Aer Lingus to operate Aldergrove Belfast - London
Gatwick 4 times daily, while retaining Shannon-Heathrow 4 times daily services.
Alternatively Aer Lingus could operate 4 daily flights from Belfast to Heathrow
using 2 of Aer Lingus's existing Heathrow slots which are currently used for
flights to Dublin and Cork, as well as the 2 Heathrow slots which are leased out
to other airlines.
Ryanair confirmed that - if so requested by the Government - it would be willing
to vote its 25% shareholding in favour of the motion to retain Aer Lingus's
existing profitable Shannon-Heathrow services. Alternatively the Government
could ask Ryanair to abstain from voting, which would give the Government and
the ESOT a majority at the EGM and allow them to save Shannon's Heathrow
services. On its own, Ryanair's 25% stake will be insufficient to influence this
decision. The trade unions, who between them own almost 20% of Aer Lingus, have
already indicated that they would vote in favour of retaining Aer Lingus's
Shannon-Heathrow services. Therefore all that is needed to save Aer Lingus's
current Shannon-Heathrow services is for Bertie Ahern's Government (acting as a
25% shareholder) to lift a finger and vote in favour of the motion at the EGM.
Speaking today in Shannon, Ryanair's, Michael O'Leary said:
'As Shannon's largest airline, Ryanair is determined to ensure that Shannon
and the Mid-West region will suffer no loss of traffic or flights as a
result of Aer Lingus's decision to abandon Shannon in favour of Belfast.
These 3 new Shannon-London flights which will connect Shannon to Stansted,
Gatwick and Luton, will replace Aer Lingus's existing Heathrow capacity and
will ensure that an additional 330,000 passengers annually will travel
between Shannon and London should Aer Lingus proceed to abandon Shannon. If
Aer Lingus cancels its Shannon-Heathrow flights, then it is inevitable that
the Shannon transatlantic flights will also transfer to Belfast Aldergrove
in the not too distant future. The Government and Aer Lingus's determination
to invest in Belfast should not come at Shannon's expense. We believe that
our proposals will enable Aer Lingus's Shannon-Heathrow services to
continue, while also allowing Aer Lingus to serve Belfast-London 4 times
daily.
'Aer Lingus's rules confirm that any 10% shareholder can ask for an EGM to
be called. It is surprising that neither the Government nor the trade
unions, both of whom own over 10% have taken up Ryanair's previous offer to
work together or called for an EGM to be held. Accordingly and in the
interests of retaining a profitable route for the benefit of all Aer Lingus
shareholders, Ryanair has asked Aer Lingus to call an EGM and we will be
asking the trade unions and Bertie Ahern's Government to support this motion
calling for Shannon's 4 daily flights to Heathrow to be maintained. This
need not come at the expense of Belfast, since we believe that Aer Lingus
can switch its recently announced 4 times daily Dublin-Gatwick flights to
Belfast. Competing from Belfast to Gatwick against the relatively high fare
Easyjet, will certainly be more profitable for Aer Lingus than competing
against the much lower fare Ryanair on the Dublin-Gatwick route. These moves
will we believe deliver superior profits and returns for Aer Lingus
shareholders and should therefore be endorsed by the management and
shareholders of Aer Lingus. Alternatively Aer Lingus can still fly four
times daily from Belfast to Heathrow by switching one Dublin and one Cork
flight and taking back the two Heathrow slots which it presently leases out.
'Since Ryanair remains committed to working closely with the Shannon Airport
Authority to help them grow and develop Shannon, we have confirmed to the
Chairman of Shannon Airport, that these 3 additional daily flights to London
will be suspended should Aer Lingus decide to maintain its existing 4 daily
flights operation between Shannon and Heathrow. It would not make financial
sense for Ryanair to add these flights in circumstances where Aer Lingus
continues to provide capacity for 330,000 passengers annually on the
Shannon-London route'.
Ryanair stated that a solution to this Shannon crisis is now firmly in Bertie
Ahern's court. Ryanair wrote to him over one week ago offering to work with the
Government to preserve the Shannon-Heathrow route. Despite this crisis in
Shannon, Bertie Ahern has ignored Ryanair's letter. Bertie Ahern's Government
cannot ignore this EGM motion. If the Government, acting as a 25% shareholder in
Aer Lingus, simply vote in favour of maintaining the profitable Shannon-Heathrow
services, then these can and will continue without affecting any of Aer Lingus's
recently announced Belfast-London flights. If Bertie Ahern fails to support this
motion, then the extent to which his Government has lied, and abandoned Shannon
in favour of Belfast will become apparent to all. In those circumstances,
Ryanair will add these 3 extra daily flights to ensure that Shannon suffers no
loss of flights or traffic as a result of Aer Lingus abandoning the
Shannon-London route.
Ends. Tuesday, 14th August 2007
For further information please contact
Peter Sherrard Pauline McAlester
Ryanair Murray Consultants
Tel. +353-1-8121228 Tel.+353-1-4980300
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