The founder of Ryanair is reported to be negotiating an investment in a Chinese airline, prompting speculation that he is poised to set up a low-cost carrier in the virtually untapped Asian market.
Mr Tony Ryan, who sparked a revolution in Irish air travel with the establishment of Ryanair in the early 1980s, is said to have been in talks with Air Macau and its parent, state-backed China National Aviation Corporation (CNAC), for several months.
However, claims that Mr Ryan may be close to reaching a deal through his investment vehicle Irlandia prompted a terse "no comment" from representatives yesterday.
A spokesman said Mr Ryan was aware of media reports that Irlandia was discussing an Air Macau buy-in but would not be issuing a response.
According to sources quoted in the South China Morning Post, negotiations have been ongoing since June.
"There's nothing concrete. We're just looking at the feasibility of doing something with them," a CNAC source said.
It is unclear if CNAC is planning to sell its 51 per cent stake in Air Macau or whether Irlandia is going to purchase a holding from minority investors, the report said.
Portuguese flag carrier Aereos Portugueses has been trying to unload its 20 per cent stake for two years and may be interested in selling.
Although budget airlines have proved successful in south-east Asia and Oceania, with Malaysia's Air Asia and Australia's Virgin Blue leading the way, China's highly regulated market has, to date, stymied attempts to transplant the low-cost formula in the world's last remaining communist superpower.
Nevertheless, China's shift towards a free-market economy has attracted Western entrepreneurs in droves.
Macau is regarded as especially ripe for development. The former Portuguese colony, handed back to Beijing in 1999, is less than an hour's flight from Hong Kong. Having garnered a reputation as a gambling mecca, it is attempting to establish itself as the region's leisure capital .
Despite mounting speculation, Mr Ryan seems determined to keep his own counsel on the issue. "He is aware of the reports but won't be saying anything," said a spokesman.
Mr Ryan, with his sons Cathal, Declan and Shane, has raised more than 360 million from share sales since Ryanair floated five years ago. The carrier reported a 4 per cent rise in pre-tax profits to 45.1 million in the three months to end-June.
Ryanair has expanded rapidly, putting on additional capacity with 50 new routes, helping raise passenger numbers by 45 per cent to 5.1 million, compared with 3.5 million in the same quarter in 2002. But the load factor has remained below last year's levels with the company suggesting it will achieve an 80 per cent average this year, rising to 85 per cent in 2004.
