Dermot Mannion, the Chief Executive at Aer Lingus, has called the latest takeover bid from Ryanair pathetic. The bid values the airline at only €748 million, which is half of what Ryanair offered on their first bid 2 years ago. The Irish Transport Minister, Noel Dempsey, and Mr. Mannion met in order to persuade the government not to sell shares of Aer Lingus to Ryanair. A 25% stock of Aer Lingus is held by the government, while Ryanair has a 30% hold, which is the majority.

The staff of Aer Lingus supports the carrier staying independent, despite the takeover bid, according to Mr. Mannion. He said that he has had many messages from staff about their support, and they are talking to all of the shareholders. They also met with the government during last week, and Mr. Mannion added that they would make their decision in their own time.

Strong opposition from the government was holding back the bid until now. Due to the deteriorating economic environment, however, the government seems to be relaxing their opposition. Michael O’Leary, the Chief Executive of Ryanair, has admitted the offer of €1.40 per share would mean they acquired Aer Lingus for nearly nothing. He argued, though, that the sudden rush of carrier bankruptcies, which have been caused from the downturn of the economy, have strengthened their position in the aviation industry.

Mr. O’Leary is anticipated to appear in front of a parliamentary committee Thursday in order to outline their proposals for the airline. Analysts are saying that other industry consolidations may give Ryanair a better chance of succeeding in their bid this time.

Find out more about these airlines at: www.ryanair.com -or- www.aerlingus.com