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IAG BOSS WILLIE Walsh has continued his publicity push over the group’s buyout of Aer Lingus as the focus turns to how Ryanair will play its hand in the deal.
The government yesterday decided to back IAG’s €1.4 billion buyout of the Irish airline after a four-month courtship aimed at unlocking the state’s 25% stake. The deal values the taxpayer-owned share at about €335 million.
It came after the airline group, which includes subsidiaries British Airways, Iberia and Vueling, offered an open-ended commitment to keep Aer Lingus’s valuable London Heathrow slots in the national carrier’s hands.
IAG also wooed the government, which was facing a potential backlash from those reliant on regional airports, with a seven-year pledge to maintain existing connections between Heathrow and Dublin, Cork and Shannon.
At a press conference today, Walsh said Aer Lingus customers would also benefit from more routes to and from Ireland, and better connectivity through IAG’s network.
“As part of IAG, Aer Lingus would have stronger buying power, stronger selling power, more ability to grow and more security to weather the slings and arrows of our industry,” he said.
Ireland will be a major beneficiary of this deal as it will boost economic growth and create new jobs.”
The key IAG promises Transport Minister Paschal Donohoe yesterday highlighted and the group’s chief was at pains to reiterate today were:
Unions have been fighting the deal on the grounds it would be bad for Aer Lingus workers and for the country, and Walsh today confirmed an expected 50 staff would go from the airline in the short term – although the overall headcount would increase.
There will be duplication … and that will result in some job losses in back office activities, principally in finance and in IT,” he said.
So what now?
With the deal set to be rubber-stamped by the Dáil tomorrow with the blessing of both Fine Gael and Labour, IAG’s attention will turn to Ryanair – which still has the power to stymie the buyout – notwithstanding it getting the approval of competition regulators.
The Ireland-based budget carrier has built up a near-30% stake in Aer Lingus and previously launched several unsuccessful takeover attempts.
More recently, Ryanair was ordered by the UK’s competition watchdog to sell down its share to 5% – a decision the airline has been fighting since 2013.
IAG said its proposal was conditional on both the government and Ryanair agreeing to hand over their stakes, however the Aer Lingus suitor has until now focussed its attention almost exclusively on convincing the state owners.
Walsh said IAG would issue formal offer documents to Ryanair within 28 days and he believed it presented a “compelling argument” for the deal to go ahead.
I expect Ryanair to behave in a rational way, as they are a well-run business with proper corporate governance. They have been very clear they will consider the offer when the offer is made.”
However he warned IAG wasn’t expecting to make any concessions to Ryanair and the €2.55-per-share offer for Aer Lingus was the highest it was prepared to go.
Meanwhile, Ryanair has been giving little away about its position. As part of its annual results announcement yesterday, when the company showed a 66% rise in profits for the year, CEO Michael O’Leary said the airline still believed the UK competition ruling was “untenable” and it should be allowed to hold onto its piece of Aer Lingus.
In the meantime, our approach to any IAG offer for Aer Lingus is unchanged – should Ryanair receive an offer from IAG the board of Ryanair will consider it in due course on the merits,” he said.
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Will he only visit cities with an Irish Embassy?
@Killian Ryan: and maybe the Ambassador can give him his room move into the 3k hotel for the night.
@Killian Ryan: no. Why make a mockery of a perfectly reasonable suggestion,
@Conor Thorne: It’s not reasonable. Loads of countries don’t have an Irish embassy. Consulates, little offices instead… He loves the army, I’m sure he has a good camp bed, sleeping bag and stove.
@Conor Thorne: most embassies don’t include the residence of Ambassadors!!! And their residences are often not large enough to allow for visitors. Just shows lack of knowledge of our foreign presence in other countries
@GClare: exactly, and it could end up costing more. Say for example its an event over a few days and the embassy is way across town, the cost of security to safely transport the President and of securing the embassy might be far in excess of using a local hotel with experience of hosting dignitaries. The reason why certain high end hotels are chosen over and over again for dignitaries of many different countries is because they have the experience, staff and infrastructure to deal with the situation. The Shelbourne would have loads of procedures and experience of dealing with foreign security teams, VIP’s and political staffs etc. The holiday inn simply wouldn’t be able to cope.
@Killian Ryan: The President of Ireland does not arrange his own accommodation abroad this is done by the Department of Foreign Affairs and he has/she would have no say as to what hotel stay in. I heard him on the six news and asking a young girl about voting she asked him why she should vote for him, and he then asked her what kind of Ireland she’d like to see for the future. Firstly, the President cannot change anything in Ireland the position is for the protection of the Constitution and representing the Irish people at home and abroad.
Wouldn’t worry about it Seán, you won’t be staying in any embassies.
Well isn’t he the great fella,
@Tim Oconnell: i can imagine the staff coming to work in the morning and having some old fella sleeping on their desk. I dont mind if someone travelling on business gets a hotel room. Its not unreasonable.
@Tim Oconnell: no time for this gimmicky stuff. The presidency casts money full stop. If we are going to scrimp and save, we should scrap the office. If these guys really want to make a difference they should become TDs.
@Henry Porter: I believe Michael D was a TD for years
SmartHomes made a combined loss of €1.2 million in 2007 and 2008. Sean Gallagher paid himself a remuneration of 420k in this time, despite having €830,000 of outstanding Irish State Agency grants (tax payer’s money) hanging over his head. If he couldn’t rein in his personal expenses when his company was on it’s knees, how can he be trusted with a 7 year term and nobody to answer to except himself. It’s like the guy wakes up everyday and pretends like his past never happened, deluded to say the least.
@Tom Cullen: but he’s wears a suit. He must be some important big businessman.
So – have we any advance on that, anyone at all willing to stay in a B&B ?
The race to the bottom
@eastsmer: Elect me as president. I’m the only candidate willing to sleep on the streets and swim to foreign countries.
@eastsmer: Mrs Higgins did when she visited Dundalk.
@eastsmer: He did mention that he would stay in a tent but how would he show up in a crumpled suit, unshowered and the smell of a breakfast roll after his state car pulls in at the local garage on the way, no, the next contender must be willing to sleep on a park bench or in a doorway,but better hurry, the doorways are in high demand.
@Sean Murphy: Thanks for the laugh, I got looks on the bus, crying laughing at that.
Anyone voting for this Fianna Fáil bagman needs to have a good hard look at themselves. Michael D is an honourable man and does this country proud EVERY time
@Michael Wynne: you must be joking. Higgins is nothing but a pig sucking at the taxpayers test while lying out of the side of his mouth. A common trait among Labour TDs.
@Jay Coleman: lying? When?
He has that Fianna Fail neck.
@Jay Coleman: I’d love to know what you think Michael D has done thats so bad. My guess, you think he had the power to have done something that he actually had no power to do. Or maybe theres some massive Michael D scandal no-onebut you has heard of.
@Jay Coleman: are you not going to share with us in what way President Higgins has lied to us?
@EillieEs: said he would not seek a second term
I suppose its cheaper to stay in Irish embassies than hotels,must remember that the next time i go on holidays.
@Peter Coen: Exactly – does he know the costs associated with a dignitary staying in an embassy? Does he think embassies are airBnBs?
He must do. Most Irish people tend to wait for an invitation before announcing that someone is going to put them up.
You’d swear little Mickey D is there on travago booking his trips and rooms etc. This is all done by some public servant and details sent on to his office. Itinerary done up and in all fairness he’s probably the last to know the details. Given his substantial payout etc let’s see him take on the role with average industrial wage and minimum pension afterwards then there might be a story.
Even if I’d never heard of or seen this man before, one look at him is enough for me to deem him untrustworthy. Some people just have a look about them. He looks like a shyster. I mean, who is voting for these types of people time and again?
@Eon Cocker: Ah, the good old Journal. Just post your “comment “ and no matter how thick you sound they’ll print it for all to see. Pity they don’t give prizes for it. You’d probably make your living at it!
And sleep on mattresses stuffed with brown envelopes.
@Martin Meyler: just clarify the corruption allegations instead of cheap shots
@Conor Thorne: bagman for Bertie? Self admitted FF fixer. Also, being associated in ANY way, as he was, with FF, he can’t be anything other than corrupt.
Woow not all heroes wear capes
“Its important to lead by example…..to ensure the use of Public funds is minimised”..So why didnt he hand back the ” substantial settlement” he got from Rte – after all WHO pays for our State broadcaster????????? Utter hypocrisy from this guy ….again..
@Margate: waiting impatiently for the answer how much compensation did the bagman get?
Where will security and his Aide De Camp stay?
What happens when he visits a country we don’t have an embassy in?
@Baron Adams TD: Aldi selling off summer stock. Tents , sleeping bags ,mini bar b q and pool floats
Throw in a Bear Grylls DVD
This chap will save the taxpayer a fortune
@Baron Adams TD: Xont worry about him he just proved that he is an idiot with a new set of teeth.
Did we not have a minister who stayed in the Waldorf Astoria instead of staying in the then Irish-owned Fitzpatrick Hotel in New York.
Some people really are generous with other peoples money.
@George Vladisavljevic: why should he stay there? Are we to only ever use Irish products anywhere in the world?
Just get the feeling that this guy would see it as an incredible personal achievement rather than an opportunity to serve his fellow country men/women. Plus he has a head like the big paper mache yokes you see in the dublin paddy’s day parade. Can’t be votin for that.
He is acting like a BIG CHILD.
You don’t have to keep promises you make looking for votes, P.rabbit TD lp
This fella is part of Bertie’s gang. This is enough of a reason not to vote for him.
Read between the lines of his Wikipedia page,
@Niall Power:Jaysus, a fair amount of fails, to be honest
Michael D should carry his own fold up cot with him next term save a fortune
@maurice healy: Stick the cot in a corner Mickie D will fit into it . Jobs a good one.
He wants to stay in embassies..Ferraro rocher will be delighted
@Kieran OKeeffe: he want satay in embassies. But only in the East I presume.
Go away Sean. You’re deluded. I suppose you have to admire his confidence in himself.
Pathetic cheap shot at the office of the President.
Why are these guys demeaning the office by not wanting to spend money to stay in hotels, or giving away the salary?
It cheapens politics into a plaything for the rich. Being a politician is a job, it has a pay packet. It’s not a vocation.
Sean Gallagher as Ireland’s yellow pack President
you could save a bit more by going Airbnb
and maybe a big mac for breakfast at McDonalds
For transport you could avail of the Cycle to Work Scheme
the added value here you will save on gym membership
Who cares … was our president supposed to stay in a Premier in . Just trying to make something out of nothing
@Aidan Murray: how can it ever be justified to pay €3000 for a night anywhere? Nobody is saying he has to stay in a dump but surely there has to be a limit to the cost of where he stays.
@Seamus Ryan: So you would be happy if the president of our country was reported staying in a hotel , in a double room, while Conor McGregor
Or his Ilk booked the “Presidential” suite, in the same hotel. This man is serving an elected role representing our country on the world stage. There are norms befitting this. I don’t think that this is wrong.
@Seamus Ryan: How many people did the bill cover, though? There’s not much point in promising not to sleep in hotels if that means that you are personally looked after and your staff can scramble for the nearest B&B, all the same.
@Aidan Murray: if it’s a State visit, the other side pays for President + an agreed number of delegation.
@Seamus Ryan: Horse manure, ill informed, non- contextual point, sorry….
Will he still gather infinity stones as he goes?
He can sleep under the rock he has been hiding under for the last few years
Go away Sean, just go away.
And will he be having breakfast in mcdonalds ;^)
@Sean Conway:
Better quality food in the travel lodge
Shows how much he knows!!! Don’t think many embassies have guest rooms
@Mary McCaffrey: Absolutely. A typical Irish embassy is some rented office space on the nth floor of a commercial building. A couple of offices, 2-3 diplomatic staff including the ambassador, and a few local staff. Toilets shared with other businesses on the same floor. And of course closed at night.
Who cares? Why is he trying to negotiate with us? I couldn’t car if he stayed in a hot air ballon.
@Big Red:
He could fill it by just talking to it!
I don’t get it, the president of our country stays in an expensive hotel, okay it was a bit excessive but where do we expect him to stay, in a Travel Lodge?
@FartyTowels:
He’d get a great breakfast in the travel lodge
Big irish fry up
Go away SG, just go away.
So he wont be staying in Irish Embassies so
Maybe he will bring the Ferrero Rocher,
For the ambassador
ahhhhhh!
more fake tan tv wannabes spouting inane dribble in the deluded hope of seeming like a concerned everyday Joe soap and achieving the status of joe dope
Look at him there, isn’t he great all the same.
No need for an Irish President the country is so small its just another burden on taxpayers
ridiculous
I’d rather vote for Trump than this clown Gallagher!
@Dotty Dunleary: well now I wouldn’t go quite that far.
Another after big monies
Still a FF bagman
Just bring a caravan
Have we Embassies in the North and South Poles that he would be allowed to go to and “Chill Out” before the Big Campaign.
Whst a clown. Maybe he should invest in a tent and a backpack. He is full of what makes the grass grow green in Texas. Vote M .D . Higgins.Slainte
Wonder who he is going to sue this time for damages when he looses. Hopefully the journal.ie
Just leave Micky at it we don’t want that narcissist representing/misrepresenting us
Still a c#@t
What a gobxhite!
Michael D
Loves the luxury needs comfort as he gets older
Fair play to Sean
@Pat Mooney: well I’d hardly expect the President to be couch surfing when representing us abroad.
@EillieEs:
His one regret was
That he never got to do santa
But he promises,
That lf he’s reelected, that HE will do santa in
THE SQUARE IN TALLAGHT SHOPPING CENTRE
ONLY IF HE CAN GET SOMEONE TO
HOLD HIM DOWN
Like
I
Am
Raging
Give him a chance, to be fair he deserves one
@Mr Mystery: why does he deserve more of a chance then any other candidate? What has he been doing over the past number of years that shows he has any interest in serving the public?
Irish people are such hypocrites. We spend most of our time complaining about how public money is wasted yet when someone comes up with a cost saving idea (which also sets a precedence), we belittle that idea. Having the president and his entourage stay in the ambassabor’s residence (where possible) would save money. And more importantly it shows everyone in the civil service/public sector that they are dealing with public money, and if the person at the top takes that seriously then they should also.
F off baldy
He can then pocket the 3 grand, stuff it in a brown envelope for his fellow crooked snakes fianna fail.
in the words of butch cassidy(who are those guys). what an idiotic bunch of morons, and we have to go and vote for them, no thanks. gallaghers case against rte cost the license payers in this country.i only hope its the lowest turnout of any election that ever was, and that the present president stays in the aras
Big deal
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