Ryanair's second bid on Aer Lingus

Today, Ryanair has done a second bid on Aer Lingus, an other Irish Airline company. They offered € 784 mio, approximately half the value of its first bid Ryanair already owns almost 30 percent of the Aer Lingus shares. ReachCapital Management (a stakeholders who owns 2 %) recommended Aer Lingus to seriously consider the offer of Ryanair.

Ryanair assured Aer Lingus that they can retain it's brand name, and the government may keep her shares in Aer Lingus. It's interesting to know that Ryanair withdrew the first bid, after the European Union started a competition investigation, because both carriers are based in Dublin and after a fusion, they would control more than 80 % of all European flights to and from Dublin.

But why have they done a second offer then? Because they think that after the merger of European Airlines like KLM an AirFrance, which has taken place after they've done the first bid, the climate of regulatory climate may have changed.

CEO Michael O’Leary said: “This proposed merger of Ryanair and Aer Lingus will form one Irish airline group with the financial strength to compete with Europe’s three major airline groups - Air France, British Airways and Lufthansa".

He says a lot, but is this really going to happen? We have to wait until we see the result of this. But probably there is some truth in his vision, because after the merging, it will form hell of an airline.

The Low Cost Airline with the cheapest fares (I'm talking about Ryanair), has plans to enlarge the fleet up to 66 planes, and create up to 1.000 jobs.

Ryanair needs to find a strong partner to secure its future! That's a long term vision, and a pretty good one too! Gogo Ryanair!