Ryanair has bought another 4 per cent stake in Aer Lingus and has claimed its total holding of 29.4 per cent, along with shares held by an employee share trust, could force the rival airline to reverse its decision to drop flights from Shannon to Heathrow.
In a statement this evening, Ryanair said the new shares were acquired at a price of €2.45 or less.
Ryanair statement
A Ryanair spokesman said: "This further investment in Aer Lingus, will make it easier for the other large shareholders (the Government and the unions) to support the forthcoming EGM motion to save the Shannon-Heathrow route while still supporting Aer Lingus's new base in Belfast."
The spokesman said that should Ryanair abstain from voting at the extraordinary general meeting as it has offered to do, the Government (with a 25 per cent holding) and the employee share ownership trust (ESOT) with a 15 per cent stake, would have a clear majority and could vote to save the Shannon-Heathrow route.
"Interestingly, should the Government also decide to abstain then the ESOT (15 per cent) and other Aer Lingus employees (approximately 7 per cent) should have sufficient votes between them to comprise a majority of the remaining 45 per cent of shareholders, and can vote to save the Shannon-Heathrow route, should they so wish," the spokesman added.
"Should the Aer Lingus employees and the ESOT vote to save the Shannon-Heathrow route, then the only way that this profitable Shannon-Heathrow route can be closed, is if Bertie Ahern's Government votes at this EGM to close it.
"Bertie Ahern's Government claimed that it would retain a 25 per cent shareholding in Aer Lingus to protect the 'national interest' and among other things Heathrow links to Cork and Shannon.
"It would be a remarkable u-turn if they now vote this 25 per cent shareholding to close this profitable route."
Ryanair said it believes that the interests of Aer Lingus shareholders can best be secured if Aer Lingus retains the profitable Shannon-Heathrow route, addresses the €4 million of cost savings identified by Shannon Airport to further increase profitability, and at the same time uses some of its other Heathrow or Gatwick slots to launch its Belfast-London route.
"Aer Lingus can and should develop Belfast, but without abandoning Shannon-Heathrow," Ryanair's statement said.