Puzzlement

[liadnan]

Michael O'Leary has bid 1.48BnEuro (£1Bn US$1.9) for Aer Lingus. Aer Lingus has refused saying it's an undervalue and the Irish Government has said they won't sell their golden share anyway (are they still allowed to do that under EC law?). What puzzles me is why O'Leary is interested in Aer Lingus at all. How on earth does the business of a medium to long haul flag-carrier fit with that of the utter bargain basement of European budget airlines?

Mind you since I'm not a multi-millionaire entrepeneur something tells me O'Leary has a better feel for these things than I do.

Comments

[66steve.livejournal.com]

I hate the thought of those lovely Aer Lingus planes being refitted in that ugly, all plastic, blue and yellow tat that Lyin' Air do.

[liadnan]

Better that than Squeezyjet Orange. Though practically speaking I am rather a fan of Stelios, less so of O'Leary and Ryan.

[eccles.livejournal.com]

Maybe Aer Lingus have better landing rights or infrastructure?

[liadnan]

Jon Snow on Snowmail thinks it may be about being prepared for anticipated fuel tax rises.

[sshi.livejournal.com]

both of these things are true, although on the minus side from O'Leary's point of view they are also heavily unionised (from way back).

the considered opinion of the Plain People of Ireland is that he's working his way up to world domination at budget prices. or he's just doing it for the pure devilment...

[knell.livejournal.com]

It's a political gesture, nothing more.

[liadnan]

Yes, I guess that would fit with O'Leary's personality

[nicnac.livejournal.com]

Oooh super cheap long haul flights?

[kittenexploring.livejournal.com]

Has anyone ever introduced you to the trebuchet?

[nicnac.livejournal.com]

Hmmm. One would have to remember to close one's mouth in case of flies, but it would be worth it for the seat pitch.

[liadnan]

Very environmentally friendly too.

[ianmcdonald.livejournal.com]

I suspect Boggerair wants its hands on those transatlantic routes, havibng seen the sucess of Zoom in applying the low-cost formula to transatlantic travel.

And he's increased his stake (http://news.bbc.co.uk/1/hi/business/5412002.stm) in Aer Lingus, whom, if you work the bookings right, are as cheap as Boggerair, don't have the baggage and everythang else scams and at least fly somewhere you might want to go to.

[liadnan]

.. and run to time? That always being my biggest gripe with Ryanair.

What happens if Branson decides to get into the budget game properly I wonder.

[fi.livejournal.com]

I think he's got his head screwed on, to be honest. What he'll probably do is take all of Aer Lingus's Boeings and leave AL to operate the Airbuses on longer haul routes. He won't combine the two into one big Ryanair - he'll keep the Aer Lingus identity, at least for a while. It should be interesting to see what happens.

[liadnan]

The Aer Lingus brand certainly has a bit more cachet.