Ryanair pushes for merger with Aer Lingus

Ryanair is calling for merger talks once again with fellow Irish carrier, Aer Lingus, according to a spokesman for the no-frills airline.

After rival Aer Lingus recently posted recorded losses, Ryanair – Europe’s largest low-cost carrier – said once again that it believed consolidating the two airlines is a key to survival in the current economic climate.

The combination of high fuel prices and an increase in competition among budget carriers has placed airlines in the sector under financial strain and in a number of cases, has led to their failure.

With the addition of the credit crunch globally, the difficulties faced by many carriers have led to some high-profile collapses, such as Eos, Silverjet and Zoom.

Ryanair is insisting that incorporating Aer Lingus into its operation would benefit the industry overall, by helping reduce costs and to lower fares for passengers – but any move of this sort is likely to be greeted with opposition by regulators.

Last year, the European Commission blocked the proposed merger of the two carriers, citing not only the loss of competition in the industry but also the loss to Ireland of its flagship carrier.

Ongoing financial troubles in the airline industry have recently prompted British Airways and American Airlines to make another attempt at receiving regulator approval to strengthen their ties.

www.ryanair.com