Defiant airline rejects new bid for EGM
AER Lingus workers, who hold almost one-eighth of shares, are expected to meet "within weeks" to discuss whether it should call on the airline to retain its Shannon-Heathrow service.
The Employee Share Ownership Trust (ESOT), which controls 12.4pc of the airline's shares, is expected to hold a board meeting over the coming weeks, following the company's rejection yesterday of a second request from its biggest shareholder, and main competitor Ryanair, to hold an extraordinary general meeting (EGM).
In a statement, the company said it had written to Ryanair rejecting the request, saying it believed the carrier wanted to "interfere with and frustrate the commercial and operational performance of Ryanair's most resilient competitor".
Chairman John Sharman added that the airline would "not dance to the tune of our competitor".
The ESOT is expected to consult with members, who include senior Aer Lingus management, to conduct a plebiscite on whether it should call for an EGM to be held.
If approved, a motion calling for the retention of the Shannon-Heathrow link would be put to shareholders, which include Ryanair and the Government.
The Mayor of Clare and member of the Atlantic Connectivity Alliance, Patricia McCarthy, also warned that the Government was entitled to seek an EGM.
"I think we have a situation where Aer Lingus are a law unto themselves, are acting in a cavalier manner and are ignoring the Government and its shareholders," she said.
One legal source added that if a vote was carried in favour of retaining the slots, the airline would have to reverse its decision to switch Heathrow services from Shannon to Belfast.
Warned
They also warned that Ryanair could challenge the decision to refuse to hold an EGM, but the low-cost airline would not comment last night, saying it was considering the reply from Aer Lingus.
The Department of Transport confirmed it would not be seeking an EGM, but was "committed" to getting another airline to serve the Shannon-Heathrow route.
In its letter to Ryanair, rejecting the second call for an EGM, Aer Lingus said it could result in an "infringement of Irish and EC competition law".
"The affect of the resolution if passed or implemented would be that Ryanair, Aer Lingus' principal competitor, will have caused or contributed to Aer Lingus being directed to carry out its commercial activities in relation to the Heathrow-Shannon routes in accordance with Ryanair's wishes," it said.
