CEO Says Two Failed Attempts Will Not Deter Him From His Goal

Undeterred by two failed hostile takeover attempts, Irish budget airline Ryanair's CEO Michael O'Leary is confident that Aer Lingus will eventually belong to him, he said Monday. In fact, O'Leary said, Ryanair could eventually come to the rescue of Ireland's flag carrier as it burns through all its cash staving off takeover attempts.

Air and Business Travel News reports that Aer Lingus has instituted another round of cost-savings' measures, which lowered its share price to about half a pound sterling. The carrier has used up considerable cash reserves staving off the hostile takeover attempts with the support of unions, shareholders, and the Irish government.

Ryanair is already the largest shareholder in Aer Lingus, holding about 29% of the company's stock. The most recent stock drop may bring about another takeover attempt by the budget airline, and O'Leary thinks the airline may be less opposed to the next takeover attempt.

For its part, incoming Aer Lingus CEO Christian Mueller said recently he plans to look for areas of the company where further cost savings could be realized, including its employees. Industry analysts said Aer Lingus may need to cut as much as 10% of its cost base, or around $215 million, to remain viable.

FMI: www.aerlingus.com, www.ryanair.com