Air Transport

Irish flag-carrier Aer Lingus has scorned budget rival Ryanair's takeover proposal, following a meeting with the country's transport ministry to discuss the offer.

Aer Lingus chief executive Dermot Mannion is dismissing the €1.40-per-share offer as "pathetic" given the value of Aer Lingus' cash reserves of €1.3 billion, its London Heathrow slot and its fleet - about half of which it owns.

"Ryanair cannot spin away the fact that Aer Lingus is and will continue to be its fiercest competitor into and out of Ireland," he says.

"Aer Lingus remains a strong business with significant cash reserves and a robust long-term future."

Mannion and Aer Lingus chairman Colm Barrington informed Irish transport minister Noel Dempsey that the airline's board had unanimously rejected the Ryanair offer, stating that it undervalued the company.

They also claim that a Ryanair takeover would result in the budget airline's gaining a monopoly position on connections to and from Ireland.

Aer Lingus says the Ryanair offer has "significant shortcomings". Mannion adds: "We have committed to give the Government, as well as all other shareholders, a comprehensive rebuttal of Ryanair's offer after the publication of its offer document."