Unions last night said Ryanair's €1.4 billion bid for Aer Lingus was effectively over and claimed workers would not accept a Michael O'Leary-led takeover "at any price".
Some 97 per cent of Employee Share Ownership Trust (Esot) members voted against the bid with a turnout of 70 per cent. The two main unions at Aer Lingus - Impact and Siptu - both welcomed the result. They said it would have resulted in a "near monopoly" on air travel from Ireland to key destinations.
An Impact statement was headlined: "Staff don't want Michael O'Leary as boss at any price." Spokesman Bernard Harbor said of the vote: "Staff and other trust members have shown they are no mugs. I doubt if they would have voted for Michael O'Leary as boss at any price. Now everyone with a stake in the company, including the Government, must continue to work to preserve and strengthen an independent Aer Lingus," he said.
"This is a ringing endorsement of the union's call for the bid to be overwhelmingly rejected," said Michael Halpenny, national industrial secretary of Siptu.
"The bid by Ryanair held nothing for the workers, the consumers or the airline and its defeat is a rejection not only of Ryanair's employment practices, but is a victory for common sense and consumer choice."
Impact, which represents Aer Lingus cabin crew, pilots and middle managers, said members were right to reject the takeover. Both Impact and Siptu have nominees on the trust that runs the Esot.
The comments by the unions concerning Mr O'Leary suggest that shareholder relationships in the future at Aer Lingus could be quite acrimonious. The Esot will hold a 12 per cent stake, while Ryanair will have a 19.2 per cent stake. Both blocs are likely to have considerable voting power, while the Esot should command board seats.
Ryanair has so far shown no inclination to take up board seats. Michael O'Leary has said it will make its views known at annual general meetings.
This week Ryanair claimed Aer Lingus was struggling financially and had pulled off routes to Almeria, Bristol and Valencia. Ryanair is sticking to its view that smaller regional airlines such as Aer Lingus will have no future when the large European carriers merge in future years. However, Aer Lingus is following a different strategy of building up its long-haul business, which it hopes will benefit from a new "open skies" regime.
Despite the result of yesterday's vote, Ryanair is pressing ahead with the bid. It intends to convene an extraordinary general meeting on December 14th to get approval for the acquisition. It is possible the offer might be withdrawn before that, though. In the meantime shareholders in Aer Lingus can still submit acceptances for the Ryanair bid.
Acceptances are due no later than 3pm on December 4th.
