Aer Lingus approves new aircraft order

Aer Lingus shareholders have approved a plan to invest in 12 new aircraft at an extraordinary general meeting held this afternoon…

Aer Lingus shareholders have approved a plan to invest in 12 new aircraft at an extraordinary general meeting held this afternoon.

Budget airline Ryanair, which owns more than 29 per cent of Aer Lingus, voted against the purchase, saying that it was concerned it would do "long-term damage to Aer Lingus' cost base and shareholder value".

However, more than 60 per cent of votes went in favour of the new Airbus order.

"It just shows how little influence or control we have over Aer Lingus," a spokeswoman for Ryanair said today.

Earlier this week, the budget airline sent a letter to Aer Lingus stating its intention to vote against the plan.

"Ryanair does not believe that the timing or pricing of this aircraft order is in the best interests of Aer Lingus or its shareholders," the company said in its letter.

"This order was negotiated some 12 months ago (May'07), at or very close to the top of the last aircraft value cycle. We would strongly urge your board and management to cancel and/or renegotiate this order to take advantage of the recent market downturn and the significant reduction in aircraft prices, to secure these same aircraft at significantly lower prices."