By Paddy Clancy

OPPONENTS of Ryanair’s bid to gain control of recently privatized Aer Lingus have put more money into shares of the former state owned airline.

A pilots’ group called Tailwinds Nominees splashed out more than $22.5 million Monday to buy up 1.2% of the equity. That gives 46% of the shares to anti-Ryanair interests, making it more difficult for Michael O’Leary’s company to reach the 50.1% it needs for control.

Ryanair’s bid for Aer Lingus, adding 33% to the share price on flotation, values what is still referred to as the national carrier at almost $1.9 billion.

Tailwinds Nominees, incorporated in August shortly before the flotation took place, had started selling its shares soon afterwards but halted the sales when the Ryanair bid was announced.

Transport Minister Martin Cullen has publicly stated his and the government’s opposition to the Ryanair bid. Aer Lingus Chief Executive Dermot Mannion and his board chairman John Sharman have declared the bid will continue to be vigorously opposed.

“The offer from Ryanair is without merit. A takeover by Ryanair, no matter how it is dressed up, would be bad for Aer Lingus, for its shareholders, for its employees and for consumers,” Sharman said.

The Aer Lingus board, which has already formally rejected the Ryanair offer, now has less than two weeks to prepare and publish a formal defense to a detailed offer, with specific details issued Monday by budget carrier Ryanair.

It said it will reduce sales, catering and ground staff to finance fare reductions at Aer Lingus.

The Ryanair document added, “There will be a specific focus on increasing the productivity of flight crew and engineering staff to lower Aer Lingus’s costs and pass on these savings in the form of lower fares.”

Average fares would be lowered by 2.5% per year for four years.

Ryanair claimed that while jobs would be cut initially, growth for Aer Lingus would follow.

The bid document stated, “By way of illustration, since December 31, 2000, Aer Lingus employment numbers fell from over 6,600 to under 3,000 whilst in the same period Ryanair’s employment numbers grew from 1,400 to over 3,600.”

Meanwhile, two members of the Aer Lingus Board have removed themselves from consideration of Ryanair’s bid for the airline.

Francis Hackett was appointed by the government, which still holds shares. London-based lawyer Michael Johns was appointed by a trust representing an employees’ shareholding group which has yet to vote on the Ryanair bid.

Aer Lingus said the two men had decided step aside from deliberations on the bid “for reasons of good corporate governance.” But the move prompted a call by all the directors to disqualify themselves from consideration of the bid because all had ultimately been appointed by the government.

Asked this week whether his reputation would be damaged if the offer to buy Aer Lingus failed, Ryanair boss O’Leary quipped, “Sure I have no reputation to damage. Reputation? What reputation?”