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Undertheflightpath: "...aviation is a sunset business".
So what is your solution for future intercontinental travel? Perhaps we'll all learn to be long distance swimmers.
JJ, You don't seriously listen to Moore McDowells opinion on anything, do you?! He's a self publicist and is never OFF the radio. His pet hate is airlines (all except Ryanair of course...he positively fawns over MOL).
Anyhow, as usual, Moore has given you bullshit for facts. Being a 'Senior Economist' he probably feels safe in doing so because everyone will just take whatever he says as biblical truth. Either that or you've misquoted the bugger entirely.
Fortunately, we're not all ready to take Moore's (or your) nonsense at face value.
The fact is that there are DOZENS of carriers worldwide that are either wholly or majority owned by their government, including Kuwait, Air France (55%), Malaysia Airlines, Air India, Indian Airlines, and even the airline of the year 2004 Singapore Airlines which is 57% state owned. The runner up...Emirates Airlines...also STATE OWNED. I could list more, but why bother.
So JJ, I'll take that as a SELL, eh?
Rainyday, I won't go digging just in case something embarrassing turns up on you.
While Aer Lingus is profitable now, what will you recommend when the profits fall off again or it goes into the red in the next downturn? And remember, even if the government could make an investment now, a future 'rescue package' scenario is NOT an option.
Walsh says he needs to invest 1 Billion in the companies immediate expansion. Where do you think this money would come from? Tax payers? Do you really think the government would dare suggest it?
There's always Debt as an option, but that just compounds the problems that will arise in the next downturn.
Garrett Fitzgerald wrote a good article in Saturdays Irish Times. He turned out against an outright sale and suggested a PPP. But he didn't quite explain how that would work if the investors weren't getting an equity stake in the company. Just like you, I have my doubts if it would work.
It has to be sold...in full...to the highest bidder, while still keeping restrictions on the disposal of its routes and (in particular) the slots in LHR. This could be catered for under a trasfer of undertakings clause.
The company needs investment and (even more) it needs the State off its back.