Aer Lingus shareholders back airline’s €1.36bn sale to IAG

Aer Lingus shareholders have backed the €1.36 billion sale of the airline to British Airways owner International Airlines Group (IAG).

An extraordinary general meeting of Aer Lingus took place in Dublin today, at which shareholders voted on four resolutions, including measures about connectivity guarantees.

The shareholders voted in favour of all four resolutions, clearing the way for the sale of Aer Lingus to IAG.

Aer Lingus chairman Colm Barrington had said IAG could be in control of the airline “within two weeks” if the takeover goes ahead.

“If shareholders vote 90 per cent in favour today, then within two weeks shareholders will receive their payment from their shares and the company will become owned by IAG - that’s the best possible scenario,” he said.

At the egm, one shareholder questioned just how much IAG was really paying for Aer Lingus, considering the Irish airline had approximately €1 billion in cash in the bank.

“IAG is paying €1.4 billion and then it can go to the bank and take out a billion. It is really paying €400 million or €360 million,” he said.

Another shareholder criticised the fact Aer Lingus had approximately €1 billion in cash considering there had been a pension deficit.

“Everyone knew of the pensions deficit, you raided the pensions and yet there’s a billion in the bank. You couldn’t fund pensions out of the billion euro fund you have?” he asked.

Mr Barrington responded saying it was a “gross mistake” to say that Aer Lingus has raided the pension fund.

“Aer Lingus has not touched the pension fund. In fact it has contributed significantly to it,” he said.

A number of people protested outside the egm , over cuts made to the Aer Lingus pension

Speaking after the meeting, Mr Barrington said the takeover didn’t spell the end of an era for Aer Lingus.

"The company is still Aer Lingus, still got the same people, the same brand, the same routes, the same customers. It's just a change of shareholders from the Government and Ryanair, and some institutions, to IAG," he said.

Mr Barrington added that he had “no regrets” seeing the change in shareholding.

He also said any concerns among shareholders surrounding the takeover will be proved to be misguided, adding that the takeover will create jobs.

“Those concerns are unfounded. We expect that by the end of 2016 there will be another 165 jobs, at least, directly created in Aer Lingus, We expected 650 direct jobs by 2020,” he said.

IAG, which launched its takeover bid for Aer Lingus in January, wants to use Dublin as a transatlantic hub, and has promised to grow services and jobs at the Irish airline.

The BA parent welcomed the results of the vote, which was overwhelmingly in favour of the resolutions.

It said it has also received clearance for the takeover from US regulators, adding that a review by the United States Department of Justice “has been satisfactorily concluded”.

The European Commission gave approval for the takeover this week.