Aer Arann seeks AIM listing

Aer Arann is looking at a listing on the London AIM and Irish stock markets in the coming months as one of its funding options…

Aer Arann is looking at a listing on the London AIM and Irish stock markets in the coming months as one of its funding options, its chairman and owner, Padraig O'Ceidigh, said today.

The regional carrier has grown from humble origins in the 1970s, when it flew to the tiny Aran islands off Ireland's west coast, to offering 40 routes including a number of destinations in Britain and northern France as well as within Ireland.

Mr O'Ceidigh took over the loss-making regional carrier with a partner in 1994 after re-mortgaging his home. He became Aer Arann's full-owner and shareholder in 2001.

"We are looking at growth in the company and we are looking at the best way to have a capital investment structure that supports that growth," O'Ceidigh told Reuters in an interview.

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"One (option) would be there would be a dissolution by me of some of my shareholding. That would happen by a private equity investment or a listing," he said.

He said the Dublin-based firm may alternatively seek private equity investment, with a stock-market listing later on. Potentially it could remain under his full control.

"In the coming months there will be a decision on which way we go," he said. "We would be looking to raise something in excess of €25 million."

Proceeds from a capital raising would be used in part to fund the airline's expansion in Britain and France, he said.

Aer Arann currently flies to 14 UK destinations from Ireland, including Birmingham, Newcastle, Manchester and Leeds Bradford as well as London Luton. It also serves Lorient Brittany and Nantes in northern France.