Government called on to protect Aer Lingus

Reaction:The Government must immediately state how it intends to protect Aer Lingus from a "predatory takeover", Labour said this morning.

The party's spokeswoman on transport, Roisín Shortall, also said Minister for Transport Martin Cullen and Aer Lingus management must state if they were aware of moves by Ryanair to take over Aer Lingus.

"The public will have been shocked by the disclosure this morning," Ms Shortall said.

"This is a potentially disastrous development for the Irish travelling public and is exactly the sort of situation the Labour Party warned could arise from the Government's ill-judged and unnecessary decision to privatise the national airline," she added.

In a short statement this morning, the Government said: "The Minister for Finance, Brian Cowen, TD, and the Minister for Transport, Martin Cullen, TD, have stated that the Government remains fully and firmly committed to competition in aviation markets. It will not sell its shares in Aer Lingus".

Fine Gael's Olivia Mitchell said a takeover would "immediately wipe out competition on British and European routes. . . . Passengers have every reason to be worried that they would suffer in terms of price and choice," she added

"There was always a good possibility that Aer Lingus would be taken over by a rival airline, but few envisaged that its main domestic rival would make the offer."

Progressive Democrats spokesman on transport Senator Tom Morrissey said he had "serious concerns" about Ryanair's move. "We have fought strongly against monopolies for many years. We do not view private monopoly any more favourable than public monopoly," he said.

"Michael O'Leary is a businessman and must protect the interests of his company. However the Progressive Democrats have only one vested interest - the consumer. Is it in their best interest to have one airline controlling 70 per cent of the market in Ireland? I would have serious concerns about that."

Ryanair's purchase of Aer Lingus would be "disastrous", according to Green Party transport spokesman Eamon Ryan.

"Air access to Ireland has increased and airfares decreased on back of the competition that existed between these two companies," he said. "Irish consumers would be the first to lose out in any merger."

In the Dáil, Socialist Party TD Joe Higgins accused Ryanair of "hijacking" the national carrier.

Siptu general president Jack O'Connor said a Ryanair takeover of Aer Lingus would be bad for the country. "Anyone with a titter of wit could have foreseen this development," Mr O'Connor said in a statement.

"It will enable Ryanair to take out its principal competitor on their main routes, acquire the critically valuable Heathrow 'slots', consolidate market dominance and dictate whatever price they like to airports, with obvious long-term adverse consequences for workers and the travelling public alike.

"All of this is a consequence of the nonsensical decision to privatise Aer Lingus in the first place."