A RYANAIR takeover of Aer Lingus will result in higher fares and will be bad for workers and shareholders, according to a letter to shareholders from the airline's Central Representative Council (CRC), which comprises all the unions in the company.

The letter signed by CRC secretary Myles Worth says any takeover would see Ryanair controlling over 80 per cent of the air traffic out of Ireland and "this would inevitably result in higher fares for passengers and cargo".

It says the €1.40 a share bid could be more than fully funded from Aer Lingus's own reserves and that the offer "fails to put any value on the other assets of the company, including aircraft and the valuable landing slots at Heathrow", nor does it take any account of the savings achieved through the recent restructuring deal at the company.

The CRC says that allowing any one company to exercise such dominance in Irish aviation would be damaging to the State's aviation policy and would significantly deprive airports of the resources they need to continue to develop.

The unions are particularly sceptical of the suggestions that Ryanair chief executive will respect collective bargaining at a merged Aer Lingus, despite commitments given to the Government.

"It is not tenable for Ryanair to suggest that it will continue to deal with the representatives of employees in Aer Lingus when its track record shows a blatant disregard for the right of workers to join and be represented by a trade union."

The letter also casts doubt on Ryanair's commitment to create 1,000 jobs following any takeover or its prospects of persuading the European Commission to sanction the deal. The CRC said it had written to the Minister for Finance and the Minister for Transport seeking a meeting to discuss the Ryanair offer.