Aer Lingus in takeover warning

Aer Lingus risks being taken over by its larger rival Ryanair unless employees agree to plans for sweeping cost cuts, its new…

Aer Lingus risks being taken over by its larger rival Ryanair unless employees agree to plans for sweeping cost cuts, its new head told today's edition of the Financial Times.

"If Aer Lingus isn't capable of mastering its own destiny, then of course the likelihood that some form of non-independence might occur is more likely," Christoph Mueller was reported as saying.

The newspaper said he answered "yes" when asked if this meant Ryanair, which has already made two unsuccessful bids for the airline.

He told the FT that an agreement with the unions was key to enabling the airline to stay independent.

"One group of employees is resisting and bringing Aer Lingus closer to a situation where we might lose our independence."

The airline said last week it plans to cut routes and jobs after failing to reach agreement on a reform plan with all of its employees.

It warned that compulsory and immediate redundancies were likely after it had come close to agreeing with most unions but had not overcome resistance from some groups including pilots who were asking for too much money.

Reuters