Ryanair fighting nasty: spanish airports and Aer Lingus
Recently the two main topics of actually regarding Ryanair have been the company’s bitter relationship with airports and local governments in Spain and the speculation over the company’s willingness to take-over Aer Lingus. I feel compelled to come back on those stories as this week brought some fresh news to the matters. News which have been rather poorly covered by the english press.
Increasing pressure on Aer Lingus:
Perhaps most anecdotically, Ryanair recently made a push on Aer Lingus. In its quality of major shareholder, Ryanair called for the Irish carrier to pay a 30 million euros dividend to its shareholders this year. It’s not the first time this year Ryanair pushes for a dividend but, taking into account the recent rumors of a possible sell of government held Aer Lingus shares, it could be a sign of the company preparing for a hostile take-over by increasing pressure on Aer Lingus’ investors. Ryanair also criticized the appointment of union leader David Begg to the board as well as the execution of the “leave and return” redundancy scheme and the carrier’s business model. By increasing pressure on the company, Ryanair is trying to destabilize it, fragment investors and make it more vulnerable to an hostile buy out.
“It’s complicated”: Ryanair and Spanish authorities
But that’s not the only place Ryanair’s been fighting nasty. In Spain, as ramping discontent among Spanish airports, unions and local authorities grows, Ryanair has been hardening its stance. A few days ago, it officially requested that the Spanish minister for the Industry remove the 65 fines the company’s been addressed. These fines total a grand 1.23 million euros and Ryanair, never too keen on spending its money, made very clear that it does not intend to pay them.
Instead the low-cost company sent a letter to Miguel Sebastian, minister for the Industry, Tourism and Commerce, claiming those fines were discriminatory and designed to weaken Ryaanir’s position in Spain. On the other hand, Ryanair seemed confident enough in its position on the Spanish market as it clearly threatened a reduction in frequencies and possible route closures if an agreable outcome wasn’t found to the issue soon.
Ryanair being annoyed by the Spanish market is really nothing new. Spanish actors showing some bitterness and resentment against Ryanair’s rarely-diplomatic ways is nothing new either. But Ryanair just launched a new battle in a war that’s ripe with low-blows. And seeing how, just this morning, a spanish judge ruled against Ryanair’s claim to avoid airbridges at Alicante, that war is far from over.
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