RYANAIR HAS asked the Irish Takeover Panel to investigate Aer Lingus’s agreement to pay its chief executive Dermot Mannion €2.8 million should he resign following a takeover of the airline.

Aer Lingus recently rejected Ryanair’s €748 million takeover bid for the company with the publication of a formal defence document.

This revealed that Mr Mannion could receive a €2.8 million payment if he resigned in the event of a takeover by a rival.

Ryanair yesterday claimed that the deal was in breach of stock exchange takeover rules and company law, as it was agreed without shareholder approval or the clearance of the market’s watchdog, the Takeover Panel.

The airline last night confirmed it had made a formal complaint about the deal to the Takeover Panel, which it wants to investigate the arrangement.

Ryanair has also forwarded the panel a copy of a letter sent to Aer Lingus chairman Colm Barrington from Ryanair chief executive Michael O’Leary, seeking answers to questions that Ryanair claims are raised by the arrangement.

Mr O’Leary has asked Mr Barrington to confirm when the agreement was made with Mr Mannion and approved by the board. He says that if it took place after December 1st, when Ryanair published its offer, then the Takeover Panel should have been notified.

Mr O’Leary says the copy of the agreement that has been made available to shareholders for inspection at a Dublin law firm is unsigned and has no date.

He also asks that if, as both Mr Mannion and Mr Barrington have said, Aer Lingus has an independent future, then “why does the board believe it is appropriate to allow Mr Mannion to receive a ‘failure fee’ of up to €2.8 million if Aer Lingus does not remain independent and he chooses to resign?”

Mr O’Leary also asks if Aer Lingus has done other such deals with directors or management.