The sale of Aer Lingus moved closer as yesterday after months of speculation the government announced that it would dispose of its remaining 25% stake in Aer Lingus as part of the disposal of state assets under the Torika agreement. The government indicated there would be no fire sale of stake stating it would be when market conditions were favourable and at an acceptable price.
Aer Lingus becomes the latest EU flag carrier to join the growing list of mid-sized carriers for sale as the Czech Government wants to open an tender for the sale of CSA Czech Airlines, the Cypriot government has indicted it wants to sell its 86% stake in Cyprus Airways to a strategic investor, while the Polish government aims to privatise LOT Polish Airlines by the end of the year.
The consolidation process will continue to evolve as the year progresses as the sale of the carriers begins in earnest, the recent spike in fuel costs to $123 per barrel and countinued weak demand and economic growth in the EU will put further pressure on carriers to reduce costs to make them attractive to investors.
Irish Aviation Research Institute © 23rd Feburary 2012 All Rights Reserved.