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INNOVATION
IAG to guarantee Aer Lingus Heathrow slots
Move designed to convince Government to allow sale of States
stake to airlines suitor
Estimates of the values of Aer Lingus Heathrow slots range from
around 400 million to figures as high as 900 million.
Estimates of the values of Aer Lingus Heathrow slots range from
around 400 million to figures as high as 900 million.
Barry O'Halloran

Topics:
Business
Transport
Barry O Halloran
Paschal Donohoe
Willie Walsh
Aer Lingus
International Consolidated Airlines Group
Mon, Feb 2, 2015, 17:02
First published:
Mon, Feb 2, 2015, 15:31
21
Barry OHalloran
International Consolidated Airlines Group (IAG) has moved closer to
a take over of Aer Lingus by offering to guarrantee its landing and
take-off rights at Heathrow Airport should its bid for the company be
accepted.
IAG has been discussing its proposal to buy Aer Lingus for 1.36
billion with the Government since the Irish airlines board signalled
that it was willing to support such a deal.
Alex White: Connectivity would be a key issue, as well as the
availability of cash for investment in the airline. Photograph: The
Irish TimesConcern over Aer Lingus deal triggers IAG response
Of course there are important national interests here. But dont we
need to hear exactly what IAG plans before making up our minds?
Say, for example, that IAG can give the Government a veto over any
future sale of the slots at Heathrow and significant comfort about
their use for flights to and from Ireland. Photograph: Alan Betson /
The Irish Times Cliff Taylor: Why TDs should listen to Willie Walsh on
Aer Lingus bid
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In a move designed to convince the coalition to allow the sale of the
States 25.1 per cent stake in Aer Lingus, IAG is formally offering to
give legally-binding guarrantees that the airlines 23 slots at
Heathrow cannot be sold without the Governments agreement.
IAGS Irish chief executive, Willie Walsh, says in a statement that in
seeking the Governments support, the group is is proposing to offer
it legally-binding commitments that go beyond the protections
currently available to it.
These commitments would give the Irish Government an important
role that they do not have today in securing the future of Aer
Lingus, he adds.
Politicians and business groups fear that a sale to IAG could result in
Aer LOIngus losing the slots, which are regarded as vital to
maintaining the Republics links with key markets.

Estimates of the slots value range from around 400 million to

figures as high as 900 million.
However, one of the reasons that the State kept a stake in the
company when it floated in 2006 was to give the Government a veto
on the sale of the slots, which allow Aer LIngus to take off and land
at the airport, which is Europes biggest international hub.
Mon, Feb 2, 2015, 17:02
First published:
Mon, Feb 2, 2015, 15:31
21
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21 Comments
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Flag
FergalSherlock
The most vital thing - and very under reported - is that currently the
government really has no real sway on what happens internally at
the airline. So IAGs takeover - with commitments - is indeed a better
proposition. BA uses 13/14 of it's own slots into DUB and BFS so can
let EI [with a an improved 'BA' std. product - larger aircraft - Oneworld booking engine] - an take those back for other uses.
Ireland really has a lack of self-confidence. DUB is indeed ideally
placed to take ALL... more
3 hours ago 2 Likes Like Reply Share
Show 2 older replies
Flag
Smellybeard
@D56
"What this article actually isn't reporting is that IAG have offered to
keep the slots for 5 years only! "
That's as worthless a guarantee as the article is a report.
2 hours ago 0 Likes Like Reply Share
Flag
dublinnnnnnnn
@D56 You don't honestly think IAG is going to axe the DublinHeathrow route? One of the busiest routes in the world? BA already

operates that route. O'Leary is right people have an obsession with

Heathrow.
2 hours ago 1 Like Like Reply Share
Flag
KevinRyan
This really is about the confidence of the Government in the ability
of the airline (and Dublin Airport) to grow rapidly on the basis of
positive market forces rather than on the ability of the airline to
continue to maintain the status quo, at best, growing a little each
year but sure of maintaining slots at London Heathrow.
If Ireland is the best little country to do business in, what is the
Government so afraid of ?, surely if there is scale and demand, there
is potential to make Aer Lingus... more
3 hours ago 1 Like Like Reply Share
Flag
DonnaRice
Once it's sold the holding company can do as they please spare us
the promises guarantees bs
3 hours ago 3 Likes Like Reply Share
Flag
ManolisSafos
The guarantee long term would be renegotiated in my opinion. If Aer
Lingus did not have Heathrow slots IAG would not be interested in
acquiring it. The current Aer Lingus product is not compatible with
the One World Alliance standards which does not allow for "budget"
type products. The Star Alliance offers a far better option for Aer
Lingus with no threat to its Heathrow slots.
3 hours ago 2 Likes Like Reply Share
Show 4 older replies
Flag
Jon
@ManolisSafos looks like you edited your earlier post containing
"incorrect" information. It is always better to leave as it so others
can fully understand any replies offered
48 minutes ago 0 Likes Like Reply Share
Flag
Jon
@Jon Manolis apologies you did not edit, IT collapsed your original
comment out of view
23 minutes ago 0 Likes Like Reply Share
Flag
Thebluecafe

As I commented last week, this has little to do with slots at

Heathrow . It's about pre clearance in T2 at Dublin airport.
2 hours ago 1 Like Like Reply Share
Flag
knowalittle
No foreign ownership. We let Irish Shipping go down the tube.
We are losing control and ownership and very little "family silver"
left.
We are dictated far too much by the EU.
Enough is enough.
If the Government want the3 loot (1.3b) give it to Ryanair and keep
are airline Irish
2 hours ago 0 Likes Like Reply Share
Flag
HeathrowHawk
It is now abundantly clear from the 'guarantee' to keep the
Heathrow slots for five years that IAG have no interest whatsoever
in either Ireland or the Irish economy but wish to acquire the
Heathrow slots at a bargain basement price that bears no
resemblance to their true value taking cognisance of the fact that
Heathrow is now operating at full capacity. It is pure folly for the
Irish government to even consider this potential offer when it is
abundantly clear that IAG are interested in asset... more
2 hours ago 1 Like Like Reply Share
Flag
RETIRED
The bid is for 2.55 per share ( minus 5c per share dividend) for
1.36billion. EI has cash of 400 million. The slots are worth up to
900million in some opinions. Which begs the question as to what the
rest of Aer Lingus is worth !!!. Corporate governance require all
shareholders be treated equally. Ryanair holds a larger chunk than
the Govt. Are Ryanair being treated equally in this negotiation ? It
will be interesting to see what transpires in the European commision
and of course Ryanair's... more
41 minutes ago 0 Likes Like Reply Share
Flag
KevinLynch
The idea of a guarantee, legally binding IAG Group and its
successors for ever, or even in the long term (whatever that might
be) is quite disingenuous. The chances that such a restriction would
be upheld by the courts beyond a few short years following a sale of
AL is somewhat fanciful . Finally, the idea that a particular
guarantee can be given to one particular shareholder ie. the Irish
state, but not to others, blatantly contravenes the Irish Takeover
Code's provisions of equal treatment (of... more

31 minutes ago 1 Like Like Reply Share

Flag
NottyTellin
Boots promised to use Irish distributers when they bought HCR
chemists. One year later only 4 out of 220 were retained.
The government cannot legally make them do anything. They know
it.
30 minutes ago 0 Likes Like Reply Share
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