Air lingus

International Airlines Group, IAG, the parent company of British Airways, has been successful in satisfying the Aer Lingus Board with its takeover bid proposal of Euros 2.55 per share (totaling to about Euro 1.36 billion Euros). IAG is also the parent holding of British Airways. This makes a major landmark victory for British Airways which, though, has still some more hurdles to cross. Earlier, Ryanair had made three failed takeover bids and were able to garner 29.8 percent of shareholding in Aer.

What makes Aer Lingus so attractive proposition for takeover bids is that this carrier occupies the fourth largest number of landing slot at the Heathrow airport, one of the most strategically located and important airport in Europe.  These pricey slots can be used for operating the long route flights which BA would be able to do with ease with this acquisition.

However, two major hurdles on the way are the stake of Ryanair and also the stake of 25.1 percent held by the Irish government.

Ryanair

It is to be noted that Aer Lingus was privatized in 2006 with the government holding back on some portion of the share to ensure that the island nation remains well connected and the private players are not able to dilute its connectivity.

With the approval from Board, the IAG has also committed to keeping a completely separate management, brand and operations for the airline. While the IAG has contended that Ireland would become a good hub for long haul US-Europe flights, Ryan Air has said that the Irelands interests are best protected by being with an Irish carrier. Ryan Air is also expected to make another takeover bid.