Decision on sale of Aer Lingus

(letter published in the Irish Times on 30 August 2006)

Madam, - The news that the Government is to proceed with the sale of Aer Lingus is a sad and pointless end to a State-owned company that has served the country well since its foundation in 1936. It is very unclear why they have chosen this path as there is no demand for it from the voters, the employees or the unions and there is no commercial reason for it. It seems that the "wag the dog" syndrome that seems to affect Fianna Fáil is taking place and that the PDs' economic policies are in complete control of the Government of which they are but a small part.

The reason that is given for the sale is that Aer Lingus needs financing to expand its fleet. This may be true but as has been pointed out before, the EU does not have any objection to member states making investments in commercially viable operations such as Aer Lingus. What it does not allow is subventions to prop up uncompetitive, loss-making companies.

As a private company its only responsibility will be providing "shareholder value". It will have no other reason to exist and if the best way that "value" can be provided is by selling out to a larger airline and becoming a feeder for its long-haul services, then that is what will happen.

Likewise if more money can be obtained by asset-stripping the company through property sell-offs and the sale (after a polite delay) of the Heathrow slots, then that is what will occur.
The amount of money generated by the sale is very small when compared to the Exchequer surpluses of recent times and the State has absolutely no need for it.

The costs of funding the pension deficit and the ever-present consultants who will advise on the sale will probably take up most of it in any case.

If anyone is unsure as to the outcome of this debacle then they should only take a look at the last time a major national asset was sold off by the Government. And didn't that work out well for everybody?

Yours, etc,

DIARMAID MacAONGHUSA, Shankill, Co Dublin.

And so farewell then Aer Lingus, you served us well

Today our fantastic Minister for Transport confirmed that the Government would be privatising Aer Lingus. I do not know why they are doing this. I can only assume it is the tail wagging the dog syndrome that Fianna Fáil suffers from and that the PDs policies are forcing them into this. To reiterate what has been pointed out by many better than me before:

• The EU does not prevent investment into State owned companies where that investment is commercially viable and therefore the Government is perfectly entitled to fund fleet expansion if it wishes.
• The amount of money that the airline will be sold for is pocket change compared to the amount of cash at the Government's disposal. The county's loaded - we do not need it.
• The Government is going to have to fund the pension deficit
• The airline industry is very vunerable to changes in the political and economic climate and yet Ireland, as an island nation, requires a full air service no matter what the oil price may be or no matter how much lucicrous fear mongering is going on about flying at the time
• At some point (and probably not too far into the future) Aer Lingus will be purchased by another airline and subsumed into it becoming a regional feeder for its master's services. Aer Leprechaun awaits.
• We already have a "free market, low fares" airline and it is the most successful in the EU. Aer Lingus will not be able to beat it and Mr. O'Leary has already stated that he intends to crush Aer Lingus as soon as it is privatised.

The whole thing is madness. Martin Cullen is the worst Irish Government minister since Conor Crusie O'Brien.

Sunday Express - Racist, Diana obsessed, Tory supporting rag

Sunday Express - Racist, Diana obsessed, Tory supporting rag, originally uploaded by ShankillFalls.

This is the perfect edition of the Express. A racist lead story that supports the Tories, and the opportunity to win a portrait of dead Diana...... And to think - there are Irish people who buy this rag and seemingly do so without shame...

Handcream and matches? This madness has gone too far....

From a BBC Report *

"Meanwhile, a woman who sparked an alert on a flight to the US was reportedly suffering from claustrophobia.

The woman was detained by police after causing a major security alert when she became unruly after a panic attack, and was found to be carrying handcream and matches.

The jet, bound from London to Washington DC, was diverted to Boston's Logan Airport, escorted by two F15 fighter jets. "

At what point are we going to end the madness of scrambling fighter jets everytime somebody farts on a plane. The delightful Michael O'Leary is right about the over the top security at British airports - making old ladies carry their handbag contents in clear plastic bags isn't saving anyone.....

* http://news.bbc.co.uk/2/hi/uk_news/4800615.stm