Aer Lingus orders the A350-900XWB and more A330-300s

[Andrew Ong 1]

News release from Airbus:

 

Aer Lingus orders Airbus A350-900s and more A330-300s

11 April 2008

 

Aer Lingus, Ireland's national carrier, has become the latest airline to place a firm order for the all-new A350 XWB. In its biggest ever acquisition for long-haul aircraft, the Irish airline has received shareholder approval to purchase six A350-900s, along with six additional A330-300s, confirming its earlier placed contract. This latest contract brings total firm orders for the A350 XWB to 362 from 22 customers.

 

Aer Lingus' new A350-900s will be deployed on the airline's growing long haul network to the United States and on other new long-range routes that are being considered for the future. The additional six new A330-300s will replace some of its earlier A330s, and will provide further growth opportunities in the short term until the first of the A350-900s are delivered. Both the A350-900s and the A330-300s will be in a two-class configuration, featuring Aer Lingus' new premier class product. The aircraft will join Aer Lingus' all Airbus fleet, currently comprising 32 A320 Family aircraft and nine A330s.

 

"The A350-900 fits well into our ambitious plans to expand existing routes and to open up new ones from our hub in Dublin. The new aircraft will fit in seamlessly with our all-Airbus fleet," said Aer Lingus Chief Executive Dermot Mannion.

 

"We are absolutely delighted Aer Lingus has chosen the A350-900 to modernise and expand their Airbus fleet. It will not only bring Aer Lingus unbeatable operating costs, but also offer their customers the cutting edge in passenger comfort. The winning economics of the A330 Family is also further demonstrated by this commitment for more A330-300s" said John Leahy, Chief Operating Officer, Customers.

 

The A350 XWB (Xtra Wide-Body) Family is Airbus' response to widespread market demand for a series of highly efficient medium-capacity long-range wide-body aircraft. With a range of up to 8,300 nm / 15,400 km, it is available in three basic passenger versions: the A350-800 accommodating 270 passengers, the A350-900 seating 314, and the A350-1000 for 350 passengers. The A350 has the widest fuselage in its category, offering unprecedented levels of comfort, the lowest operating costs and lowest seat mile cost of any aircraft in this market segment. Powered by two new generation Rolls Royce Trent XWB engines delivering each up to 92,000 lbs of thrust, the A350 XWB Family is designed to confront the challenges of high fuel prices, rising passenger expectations, and environmental concerns.

 

With a true wide-body fuselage allowing very high comfort standards, the A330-300 is able to accommodate seat and class configurations to suit the diverse customer requirements. It has a range of up to 5,650 nm / 10,500 km with a full passenger load. Highly efficient and optimized for the medium - to extended range market, the A330-300 offers the best balance between range and cost. The A330-300 remains the most economic means of flying 300 or so passengers on medium range routes in true long haul comfort.

Edited April 12, 2008 by Andrew Ong

[Pieter C. 5]

Aer Lingus Will Seek Investor To Thwart Ryanair

 

December 12, 2008

Aer Lingus will seek a friendly investor to take a majority stake in the airline and stave off a EUR750 million euro (USD$989.3 million) bid from rival Ryanair, its chairman was quoted saying on Friday.

 

"If they don't get us this time around, they won't get us again because I am not going to stay as chairman for three years and have this hanging over me," Colm Barrington said in an interview with the Irish Times newspaper.

 

Barrington said he had not identified a perfect partner for Aer Lingus, but said from a consumer and a country point of view Air France KLM "would be a better option than Ryanair". Air France KLM declined comment.

 

Aer Lingus's board rejected Ryanair's all-cash bid of 1.40 euros a share, arguing it significantly undervalued the airline.

 

Europe's biggest budget airline tried to buy Aer Lingus for double the price of its current bid in 2006, but was thwarted by an EU ruling that it would create a near monopoly in European flights out of Dublin.

 

Yet Aer Lingus's campaign to remain independent could be a hard sell when small airlines are being gobbled up across Europe.

 

Analysts say the wave of consolidation could give Ryanair a greater chance of success in getting its offer past European competition authorities. But Barrington, who was appointed chairman in September, was not convinced.

 

"Airline consolidation is bit like sex, there's more talk about it than actually takes place," he said.

 

Aer Lingus said this week it expects a job-cutting deal with unions will boost its performance next year after securing EUR50 million of savings. Before it secured the deal, Aer Lingus had said it would report an operating loss next year.

 

Barrington did not rule out a link-up with a private equity group. "It could be a short-term solution for independence, but private equity can be fickle too," he said.

 

Barrington, who knows Ryanair chief executive Michael O'Leary from their days working for the airline's founder Tony Ryan, said Aer Lingus would also consider issuing shares to dilute their rival's near 30 percent shareholding.

 

Ryanair has tried to appeal directly to the government and employees, holders of more than 25 percent and 14 percent of the former state carrier.

 

Ryanair has said it would recognize trade unions at Aer Lingus, in contrast to its own company policy. It said it would give the Irish government control over Aer Lingus's valuable landing slots at London Heathrow Airport and restore the Shannon to Heathrow route.

 

But unions have rejected the guarantees and remain concerned over job prospects.

 

Barrington told public broadcaster RTE on Friday the company was looking at various options with regard to investors.

 

"What I want to do is ensure that Michael O'Leary and Ryanair are not in a position to keep harassing us," he said.

 

(Reuters)