ryanair

Sep 04 22:15

More EGM News

By: Ciarán Tags:

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.

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Aug 15 09:10

Aer Lingus and Foss v Harbottle

By: Ciarán Tags:

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.

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Aug 14 20:53

Ryanair to the Rescue? I Doubt it

By: Ciarán Tags:

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.

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