Ryanair 'eyes Stansted takeover’
08.08.08
Michael O'Leary, chief executive of Ryanair, said the airline is interested in launching a takeover bid for Stansted Airport, The Daily Telegraph reports. He told the newspaper that he was convinced the UK Competition Commission's investigation into Stansted-owner BAA would recommend breaking up the airports operator, which would open the door for a bid of around £2 billion.
Mr O'Leary said he would like to prove to BAA and the regulators that he can run it much better than they can. He would increase passenger numbers from 24 million to 40 million by halving landing fees and building a low cost second runway and terminal, 'instead of the £4bn Taj Mahal BAA's planning - and we could bury Harry Bush [the Civil Aviation Authority's economic regulator] under the concrete on the ramp.’
The 'outspoken Irishman' told the Telegraph that acquiring Stansted was one of his two main ambitions before he bows out as chief executive of the low-fare carrier - the other being the purchase of rival Irish airline Aer Lingus, in which Ryanair holds a 29.8% stake.
Responding to the interview, Goodbody Stockbrokers analyst John Goode said: ‘While we believe the break up of BAA would improve competition and, therefore, benefit airlines, a Ryanair bid would likely come under microscopic scrutiny from a competition perspective, as it is Ryanair's largest base.'
Mr O'Leary also reiterated his decision to remain in his post for ‘two to three years’, adding: ‘I was ready to step down a year ago because it was getting boring, but now everyone says we're in the s--- so I'm definitely staying.’
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