2nd Feb 2015 15:21
LONDON (Alliance News) - International Consolidated Airlines Group Monday offered a number of commitments in order to secure the support of the Irish government in its EUR1.36 billion bid for Irish airline Aer Lingus, including protecting the Irish airline's routes and identity.
In a statement, the owner of British Airways and Spanish airlines Iberia and Vueling said its proposed legally binding committments go well beyond the protections currently available to the Irish government.
Unless there is "explicit Irish government agreement", Aer Lingus' 23 slot pairs at London Heathrow will not be sold, including to other IAG airlines, while Aer Lingus' name, head office location or place of incorporation in the Republic of Ireland will not be changed.
In addition, IAG said it is prepared to offer a further commitment to operate the slots on Irish routes for five years.
"We are committed to maintaining and strengthening Aer Lingus," Willie Walsh, IAG chief executive, said in a statement.
"We want to develop air services that ensure Ireland's connectivity is enhanced. In seeking the support of the Irish Government, we propose to offer it legally binding commitments that go well beyond the protections currently available to it. These commitments would give the Irish government an important role that they do not have today in securing the future of Aer Lingus," Walsh said.
The commitments and giving greater powers to the Irish government will be subject to Irish takeover rules and EU competition review, IAG said.
Aer Lingus has already indicated that it would be willing to recommend IAG's bid.
By Samuel Agini; [email protected]; @samuelagini
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