Ryanair takeover bid - latest developments

Aer Lingus Chief Executive Dermot Mannion and Sean Coyle, the airline's Chief Financial Officer both requested this evening that the controversial 'golden parachute' or 'failure fee' be removed from their contracts. The decision follows an Aer Lingus board meeting called to limit the public relations damage after the furore surrounding the deal refused to go away.

Minister for Transport, Noel Dempsey TD had written to the board of Aer Lingus to inform them that he would not be attending a farewell dinner for the airline's previous Chairman John Sharman. The dinner is planned for later this month but Minister Dempsey has refused to attend because of the the manner in which the airline's Chief Executive Dermot Mannion managed to get his 'failure fee' contract signed. Minister Dempsey had also stated that he would support a call for an EGM to discuss the matter. Ryanair yesterday called for an Extraordinary General Meeting (EGM) to be called to block the changes to Mr. Mannion's contract.

The Aer Lingus employee shareholding trust ESOT which owns 15% of the airline, had written to the Aer Lingus Chairman pointing out that changes to the Chief Executive's contract have to be approved by a general meeting of members. ESOT had also said that they would vote against the proposed changes in the evnet of the matter being discussed at an EGM.

Aer Lingus Board member and General Secretary of  the Irish Congress of Trade Unions (ICTU) David Begg said that he certainly had not approved the arrangement, and nor did any other member of the board. He said the board's permission was not sought at any time. Arriving at Government Buildings to discuss the current economic crises, Mr. Begg also said that the matter of Mr. Mannion's 'grandiose parachute scheme' made him 'absolutely mad' at a time when he was personally actively involved in trying to save jobs at Aer Lingus and helping to see a restructuring plan in place which would help to ensure the long term viability of the airline.

Ryanair today notified the European Commission of it's plan to takeover Aer Lingus. The Commission has set a February 12 deadline to either clear the deal or to open a four month investigation. Last time around Ryanair's bid was blocked by the EU Commission.