A takeover by International Consolidated Airlines Group (IAG) of Aer Lingus would benefit both companies if it were to go ahead, according to the chief executive of one of their competitors.
IAG says it is willing to pay €1.36 billion for Aer Lingus and has been in talks for several weeks with Government representatives in an effort to reach agreement on the sale of the State’s 25.1 per cent stake in the airline.
Carolyn McCall, chief executive of the British budget airline Easyjet, says the deal should be allowed. “I would personally say that I think it [Aer Lingus-IAG] should go through – it’s rational consolidation,” she said.
Good for Ireland
“It’s going to be good for Ireland, it’s going to be good for IAG and it’ll be good for Aer Lingus,” Ms McCall told an interview with British newspaper, the Daily Telegraph.
Easyjet operates services from Belfast International Airport to Britain and Europe, putting it into direct competition with Aer Lingus and IAG airline Vueling, which fly to a number of the same destinations from Belfast City Airport.
Easyjet is Europe's second biggest low-cost carrier after Ryanair. Shortly after IAG's first approach to Aer Lingus in December, a number of the Aer Lingus's institutional backers suggested Easyjet could also bid for the company, however it dismissed this speculation quickly.
Ms McCall was cautious about whether her own company would take part in any further consolidation of European airlines. “It’s not part of our core strategy, because we think we can grow without consolidating,” she said.
However, she indicated there could be opportunities for the airline in the future.
