Ryanair Makes Bid for Aer Lingus
October 05 2006
Uber-Budget carrier Ryanair has launched a $1.9 billion bid to purchase Aer Lingus. The move would give Ryanair access to trans-Atlantic routes — a first for a European no frills airline. The two airlines would continue to be run separately. For its part, the Irish government, which owns 1/3 of Aer Lingus, said it would not sell its stake. Even so, this purchase would mark a huge change for Ryanair, which has focused on building an operation that can profitably charge next-to-nothing for its tickets. Absorbing another carrier — especially one with a completely different strategy, will be a stretch. But, if this goes through, consumers should benefit in the long-run with even cheaper fares across the Atlantic.
