Ryanair Congratulates Aer Lingus on Finding a P...
RYANAIR CONGRATULATES AER LINGUS ON FINDING A PARTNER WHICH IS EVEN
WEAKER AND IN WORSE SHAPE THAN AER LINGUS
Ryanair, today (Thursday, 22nd Jan '09), congratulated Aer Lingus on
the announcement of its "partnership" with United Airlines to operate
a route between Washington and Madrid - in 15 months time - from
March 2010 onwards.
This partnership, which joins Aer Lingus to one of the weakest U.S.
airlines doesn't add one job, one passenger, or one visitor to
Ireland whatsoever. United Airlines in 2005 defaulted on pension
obligations for 122,000 employees, when its $9.8 Billion pension
default was one of the largest in U.S. history. Ryanair believes
that United Airlines is in many ways similar to Aer Lingus. Both
have recently announced losses (in United's case a $5.35 Billion -
yes Billion - loss) for 2008, and both airlines have recently
announced capacity cuts, route cuts, pay cuts and job cuts.
Responding to this "partnership" today, Ryanair's Michael O'Leary
said:
"Aer Lingus and United Airways share many similar traits. They both
used to be big in the 1950's and 1960's, but sadly today they are
just shadows of their former glory. Both have recently announced
losses, job cuts and pay cuts. After months of trawling around
looking for partners, it is a sad reflection on Aer Lingus that the
best they could come up with is one of the weakest and biggest loss
makers in the U.S. airline industry. Given the scale of United's
losses there is no guarantee that they will even be around in March
2010 to operate this "partnership".
"It is hard to think of any transatlantic airline losing any sleep at
the thought of being faced with the combined weakness of Aer Lingus
and United Airlines on the Madrid-Washington route. Today's
announcement shows just how desperate Aer Lingus is to find a
partner, any partner it can, even if the flights don't start until
March 2010. This so called "partnership" with another "loser" like
United shows that Aer Lingus has no independent strategy, and no
prospect of remaining independent.
"Today's "partnership" comes on the back of a series of recent
flip-flops by Aer Lingus on fuel surcharging, the Heathrow-Shannon
route and Dermot Mannion's ¤2.8m failure fee and sadly shows that Aer
Lingus has no credible strategy either for independence or for
growing traffic, tourism and jobs in Ireland. Aer Lingus can't match
Ryanair's prices, it can't match Ryanair's punctuality, and it can't
match Ryanair's strong growth and vision for the future either".
Ends.
Thursday, 22nd January 2009
Enquiries:
Ryanair Telephone: +353 1 812 1212
Howard Millar
Davy Corporate Finance Telephone: +353 1 679 6363
(Financial Adviser to Ryanair and
Coinside)
Eugenée Mulhern
Brian Garrahy
Morgan Stanley Telephone: +44 20 7425 5000
(Financial Adviser to Ryanair and
Coinside)
Colm Donlon
Adrian Doyle
Murray Consultants Telephone: +353 1 498 0300
(Public Relations Advisers to Ryanair)
Pauline McAlester Telephone: +353 87 255 8300
The directors of Ryanair and Coinside accept responsibility for the
information contained in this announcement, save that the only
responsibility accepted by the directors of Ryanair and Coinside in
respect of the information in this announcement relating to Aer
Lingus and the Aer Lingus Group, which has been compiled from public
sources, has been to ensure that such information has been correctly
and fairly reproduced or presented (and no steps have been taken by
the directors of Ryanair and Coinside to verify this information). To
the best of the knowledge and belief of the directors of Ryanair and
Coinside (who have taken all reasonable care to ensure that such is
the case), the information contained in this document for which they
accept responsibility is in accordance with the facts and does not
omit anything likely to affect the import of such information.
Davy Corporate Finance, which is regulated in Ireland by the
Financial Regulator, is acting exclusively for Ryanair and Coinside
and no one else in connection with the Offer, and will not be
responsible to anyone other than Ryanair and Coinside for providing
the protections afforded to clients of Davy Corporate Finance nor for
providing advice in relation to the Offer, the contents of this
announcement, the Offer Document or any transaction or arrangement
referred to in this announcement.
Morgan Stanley & Co. Limited is acting exclusively for Ryanair and
Coinside and no one else in connection with the Offer and will not be
responsible to anyone other than Ryanair and Coinside for providing
the protections afforded to clients of Morgan Stanley & Co. Limited
nor for providing advice in relation to the Offer, the contents of
this announcement, the Offer Document or any transaction or
arrangement referred to in this announcement. This announcement does
not constitute an offer or an invitation to offer to purchase or
subscribe for any securities. Any response in relation to the Offer
should only be made on the basis of the information contained in the
Offer Document or any document by which the Offer is made.
Terms defined in the Offer Document have the same meaning in this
announcement unless otherwise stated.
---END OF MESSAGE---
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
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