Aer Lingus owners are in talks with major banks to secure a potential £4.5 billion sale, marking a significant shift in the airline’s ownership structure and a potential boon for the Irish economy.
The owners of the collapsed airline ‘Aer Lingus’ are in talks with several major banks to secure a potential sale worth £4.5 billion. The deal, which is subject to approval from the European Commission, would see the airline returned to Irish ownership.
Established in 1936, Aer Lingus is the national flag carrier of Ireland.
The airline operates a fleet of over 50 aircraft and offers flights to over 100 destinations worldwide.
With its primary hub at Dublin Airport, Aer Lingus provides connections to major European cities as well as transatlantic services to North America.
In 2015, the airline was acquired by International Airlines Group (IAG) , parent company of British Airways and Iberia.
A New Era for Aer Lingus
If agreed, the sale would mark a significant shift in the airline’s ownership structure. In 2020, ‘Ryanair’ acquired a majority stake in Aer Lingus as part of a £500 million deal. However, the Irish government has since sought to regain control of the airline. The new sale talks are an attempt to achieve this goal.
Established in 1984, Ryanair is an Irish budget airline that has revolutionized the European air travel industry.
Headquartered in Dublin, Ireland, the airline operates over 2,000 flights daily to more than 200 destinations across Europe and North Africa.
With a fleet of modern Boeing aircraft, Ryanair prides itself on offering affordable fares, efficient operations, and minimal frills.
The airline has become synonymous with low-cost travel, attracting millions of passengers annually.
Banks Weigh In
Several major banks have been approached by the Aer Lingus owners to provide financing for the potential sale. These include Bank of Ireland, AIB, and BoI’s subsidiary, Bank of Ireland (International). The deals would see these banks providing a significant portion of the £4.5 billion required.
A Potential Boost to the Irish Economy
The sale of Aer Lingus has been seen as a potential boon for the Irish economy. With the airline’s return to ownership by an Irish entity, it is expected that more jobs will be created and investment in the country increased.
Ireland has experienced rapid economic growth in recent decades, driven by foreign investment and a highly educated workforce.
The country's corporate tax rate of 12.5% is among the lowest in Europe, making it an attractive location for multinational corporations.
Ireland's GDP per capita is one of the highest in the world, with a strong focus on industries such as technology, pharmaceuticals, and finance.
The economy has also diversified to include tourism, agriculture, and services.
Next Steps
While talks are ongoing, no final decision has been made regarding the sale of Aer Lingus. However, if agreed, the deal would see the airline operate as a standalone business with full Irish ownership.
