Path Cleared to IAG’s Aer Lingus Takeover
Ryanair formally agrees to sell its 29.1 percent stake
British Airways parent AIG has cleared the last hurdle to its takeover of Aer Lingus. (Photo: Flickr: Creative Commons (BY-SA) by Aero Icarus)

Ryanair’s acceptance on Tuesday of International Airlines Group’s offer for its shares in Aer Lingus means that IAG’s €1.4 billion acquisition of the Irish flag carrier “is now wholly unconditional.” With Ryanair’s agreement to sell its 29.1 percent share, the holders of more than 95 percent of Aer Lingus have voted to in favor of IAG’s acquisition.


“We’d like to welcome Aer Lingus into IAG,” said IAG chief executive Willie Walsh. “It will remain an iconic Irish brand with its base and management team in Ireland but will now grow as part of a strong, profitable airline group. This means new routes and more jobs benefitting customers, employees and the Irish economy and tourism.”


The agreement finally ends months of negotiation and legal wrangling over IAG’s effort to take control of Aer Lingus. Although in January Aer Lingus accepted IAG’s third bid for the Irish flag carrier, the Irish government refused to sell its 25-percent stake until IAG guaranteed to certain stipulations about the future of the airline, most notably a promise to maintain Aer Lingus’s slots at London Heathrow Airport. In May IAG agreed to the terms, including a commitment to maintain Aer Lingus’s current daily winter and summer scheduled frequencies between London Heathrow and Dublin, Cork and Shannon for at least seven years after the acquisition.


IAG also said Aer Lingus will operate all of its scheduled international air transport passenger services under the Aer Lingus brand, and maintain Aer Lingus as its registered name and its head office and place of incorporation in the Republic of Ireland.