UK regional carrier Flybe has reached “agreement in principle” with
Ryanair to take on a package of routes as part of Ryanair’s bid to take
over Irish flag-carrier Aer Lingus.
The package would include a payment of €100 million ($136 million) to Flybe.
Ryanair is making its third bid to take over Aer Lingus. The European Commission(EC) has filed a statement of objections to the proposed acquisition.
The Irish low-cost carrier has submitted to the EC what it has described as a “radical and unprecedented remedies package” to allay fears that a takeover would lead to a monopoly on many routes currently served by both Irish airlines.
Ryanair CEO Michael O’Leary has previously said the “remedies involve two upfront buyers each basing aircraft in Ireland to takeover and operate a substantial part of Aer Lingus’ existing route network and short-haul business.”
International Airlines Group, parent company of British Airways, has signed a nonbinding agreement covering Aer Lingus’ London Heathrow slots as part of Ryanair’s proposed package of concessions.
In a statement, Flybe, Europe’s largest regional airline, confirmed—following press speculation on its talks with Ryanair—it had reached agreement in principle “about the possible transfer of a number of aircraft and operating routes. The agreement provides for a new company to be incorporated, into which the relevant business assets [including cash of €100 million] and liabilities would be transferred and which Flybe would then acquire.”
Flybe said the agreement had not been approved by its board and would be subject to shareholder approval. It was dependent on several factors, notably the outcome of the EC’s deliberations on the competition aspects of Ryanair’s bid.
atwonline.com
The package would include a payment of €100 million ($136 million) to Flybe.
Ryanair is making its third bid to take over Aer Lingus. The European Commission(EC) has filed a statement of objections to the proposed acquisition.
The Irish low-cost carrier has submitted to the EC what it has described as a “radical and unprecedented remedies package” to allay fears that a takeover would lead to a monopoly on many routes currently served by both Irish airlines.
Ryanair CEO Michael O’Leary has previously said the “remedies involve two upfront buyers each basing aircraft in Ireland to takeover and operate a substantial part of Aer Lingus’ existing route network and short-haul business.”
International Airlines Group, parent company of British Airways, has signed a nonbinding agreement covering Aer Lingus’ London Heathrow slots as part of Ryanair’s proposed package of concessions.
In a statement, Flybe, Europe’s largest regional airline, confirmed—following press speculation on its talks with Ryanair—it had reached agreement in principle “about the possible transfer of a number of aircraft and operating routes. The agreement provides for a new company to be incorporated, into which the relevant business assets [including cash of €100 million] and liabilities would be transferred and which Flybe would then acquire.”
Flybe said the agreement had not been approved by its board and would be subject to shareholder approval. It was dependent on several factors, notably the outcome of the EC’s deliberations on the competition aspects of Ryanair’s bid.
atwonline.com
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