Ryanair's chief executive Michael O'Leary has said this morning that even if its €1.4 billion offer for Aer Lingus does not succeed it will remain as a significant minority shareholder.
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Speaking today as the airline reported a 39 per cent profit rise to €329 million for the six months to September 30 th, Mr O'Leary said: "If our offer is not accepted by a majority of Aer Lingus shareholders, we will continue to be a significant minority shareholder and will exercise whatever influence we can to encourage Aer Lingus to reduce costs and offer lower fares which is, we believe, its best strategy for the future."
"We believe the combination of Aer Lingus and Ryanair into one strong Irish airline group will be rewarding for consumers and will enable us both to vigorously compete with the mega-carriers in Europe."
Ryanair has acquired a 19.2 per cent stake in Aer Lingus although a full takeover has met stiff opposition from the Aer Lingus board, its staff and the Irish government.
Just last week, Aer Lingus said the "derisory" takeover offer was "ill-conceived, contradictory and anti-competitive".
The board of the Employee Share Ownership Trust (Esot) has started balloting its members on the Ryanair bid and has voiced concerns as to how Aer Lingus profits would be reported if Ryanair acquired the airline. The Esot now holds a crucial shareholding of approximately 12 per cent.
Ryanair posted a stronger-than-expected 23.7 per cent rise in second-quarter net income today.
The company also revised upwards its guidance for the full year on an improved outlook for the winter period.
Ryanair said today profits for the six months to September 30th were up as the number of passengers it carried jumped from 18 million to 22.1 million.
The airline said total revenues rose by 33 per cent to €1.256 billion, and that it now expected a 16 per cent increase in full-year net profit after tax to €350 million compared to previous guidance of an 11 per cent rise.
Unit costs increased by 7.5 per cent as fuel costs rose by 42 per cent to €337 million.
"The Ryanair lowest fare model has repeatedly proven that it can generate increased profitability and significant passenger growth during difficult trading conditions while many of our competitors are struggling to deliver profits or are losing money," Mr O'Leary said.
He said fuel surcharges imposed on passengers by rivals increased the gap between "their high fares and Ryanair's lowest fares" during the first half. "Our unwavering determination to avoid fuel surcharges has enabled us to deliver rapid traffic growth and generate higher profits," he added.
Ryanair also benefited from a 27 per cent rise in ancillary revenues including food, drink and hotels. Despite raising its profits growth expectations from 11 per cent to 16 per cent for the full year, Ryanair said it remained "cautious" in its outlook for the second half as it faced "significantly higher oil prices" than a year ago.
Mr O'Leary again called for the break-up of the BAA "monopoly" on London's main airports, Heathrow, Gatwick and Stansted.
"Until there is competition between the three London airports, airport charges will continue to rise and passengers will have to suffer these over specified, inefficient facilities," Mr O'Leary said.