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More EGM News

Submitted by Ciarán on Tue, 04/09/2007 - 22:15

Hat tip to P O'Neill on Irish Election, who points towards Ryanair's formal notice of requisition for an EGM at Aer Lingus. As P. says, Ryanair have to be very careful about saying that they are seeking the reinstatement of the Shannon-Heathrow link for the commercial good of Aer Lingus as a whole: otherwise (in my non-expert reading of corporate law) they would be seeking to commit a fraud on the company.

But you have to think that this is bullshit. Surely the Belfast-Heathrow decision by the management of Aer Lingus is (whatever we may think of it) a tactic to recover profitable ground lost. Belfast-Heathrow is presumably bound to be more profitable than Shannon-Heathrow.

I get the feeling, now that they're sending lawyers out to do their talking, that Ryanair's heart isn't in this particular stunt any more. So how are they going to back down? My guess is that they will be defeated and will then moan about how their the only ones looking after the customer etc. In other words, no change.

Aer Lingus and Foss v Harbottle

Submitted by Ciarán on Wed, 15/08/2007 - 09:10

Update: I get a lot of traffic from people at academic ip addresses googling Foss v Harbottle. I should emphasise that the following is at best rather speculative. So don't go sticking it in a university essay!

One last comment on the Aer Lingus move to Belfast. As I said last night, I have my doubts about Ryanair's motives towards Aer Lingus.

Aer Lingus is, essentially, a 25% subsidiary of Ryanair. But that doesn't mean that the maximisation of Ryanair share values (which its Michael O'Leary's legal obligation to deliver) would result from the maximisation of Aer Lingus share values. So I wonder about what he's up to. Does it involve him envisaging an actual reversal of Aer Lingus's decision? Such a reversal would involve wandering into some strange legal territory.

If Ryanair and the government did succeed in changing the decision, my guess is that Aer Lingus would be liable, at least in theory, to be taken to court by any of the minority shareholders, people like Denis O'Brien. read the rest of this post »

Ryanair to the Rescue? I Doubt it

Submitted by Ciarán on Tue, 14/08/2007 - 20:53

Speaking of which, I see that Sarah Carey is delighted that Michael O'Leary is sticking it to the government by calling for an EGM over Aer Lingus's move from Shannon to Belfast. Sarah says that "I just LOVE him for taking this stance" so I think it's safe to say she's impressed!

Sadly, my capacity for love is more limited. read the rest of this post »

Sinn Plane

Submitted by Ciarán on Tue, 14/08/2007 - 20:18

Oh the joys of being an all-Ireland party! Marvellous to read two posts on the Sinn Féin site from the 7th of August and one from the 13th:

First we hear that:

"Sinn Féin West Belfast MLA Paul Maskey MLA has welcomed the Aer Lingus decision to base its new regional hub at Belfast International Airport.

Mr Maskey said:

"This is good news for local people who get new flights and hopefully cheaper flights."

and then, from Sinn Féin's Limerick representative, Maurice Quinlivan:

This decision on the Heathrow route if confirmed could prove very detrimental to our local economy and will make it difficult to attract tourism and future investment. Direct jobs will also be lost at the airport. We are a small island nation we need a national airline, one that will play a dynamic role in the national and local economy ensuring we have adequate cargo and freight routes as well.

Then there's Arthur Morgan TD:

“Fianna Fáil through its privatisation agenda has facilitated this financial loss to the country thus proving again that the privatisation of key public services and interests does not deliver better services, more jobs or a stronger economy."

So that's a clearly all-Ireland party line then.

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