14 January 2015: Limerick Chamber has today expressed grave concerns in regard to the on-going takeover bids by the International Airlines Group (IAG) to Aer Lingus.

Speaking on the matter Limerick Chamber Interim CEO, Dr. Órlaith Borthwick said, “The Irish government strategically holds a 25.1% stake in Aer Lingus to ensure that the vital connectivity that businesses in Ireland have to the international hub at London Heathrow and direct services to North America remain in place.”

“As an island economy on the periphery of Europe, any sale of Aer Lingus would have to protect this connectivity ensuring that Ireland remains a competitive location in which to do business. While Ireland is heavily indebted, the cash injection for government from this sale is not enough to offset the potential threat in the loss of this connectivity and the detrimental impact it could have on businesses and jobs” continued Dr. Borthwick.

“Government policy is to deliver balanced regional development and the IDA continue to commit to delivering higher levels of FDI to the regions outside of Dublin. Any loss of Heathrow connectivity would not only be detrimental to existing FDI companies but would hamper any ability to attract new inward investment.”

“Furthermore, any takeover bid which creates or strengthens a monopoly position must be met with caution. In this instance, IAG would not only increase their dominant position on London Heathrow slots, they would have a monopoly on Ireland-Heathrow connectivity and could potentially become part of the largest JV carrier between Europe and North America. One must ask if such trends of consolidation are in the best interests of consumers? While such decisions will ultimately lie with the European Commission, Limerick Chamber will be working with other Chambers and business representative groups to oppose any move by government to sell their veto,” concluded Dr. Borthwick.

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