Abu Dhabi: Aer Lingus, the national carrier of Ireland, is cautious of a “hostile takeover” with rival Ryanair forced to sell down its near 30 per cent stake to 5 per cent.

Christoph Mueller, chief executive of Aer Lingus, said in Abu Dhabi on Wednesday the airline intends to remain independent, however, he understands that “as a listed company you are up for sale every day”.

The United Kingdom Competition Appeal Tribunal has previously ordered low cost Ryanair to trim its 29.8 per cent stake because it gives the airline “material influence” over its Irish competitor. Ryanair previously tried to take over Aer Lingus.

The government of Ireland owns 25.1 per cent of Aer Lingus, however, has frequently said it is not an airline shareholder, suggesting it is unlikely to lift its stake in the Ryanair sell down. Abu Dhabi’s Etihad Airways holds a 4.99 per cent stake in Aer Lingus.

Unlike most of the other airlines at the time Etihad purchased its stakes, Aer Lingus is not in trouble. The carrier expects to at least match last year’s €61.1 million (Dh290.8 million) profit. However, this does not necessarily mean Etihad is not interested. Virgin Australia, of which Etihad holds just over 20 per cent, was profitable when the Abu Dhabi carrier first took a stake.

Earlier this year, Etihad lifted its stake in Aer Lingus to 4.11 per cent at a cost of tens of millions of euros. At the time Etihad was given “creeping provisions” and does not have to report its next stake increase until it passes 5 per cent.

Partnership

Mueller, speaking to Gulf News on the sidelines of the International Air Transport Association (IATA) World Financial Symposium, was reluctant to comment on the prospects of Etihad increasing its stake. Instead he said the two airlines were exploring ways to enhance the partnership.

“We are currently embarking to look for more synergies on the cost side — these are joint procurement projects,” he said.

Mueller announced in July he would step down next year in May after five years in the top job. Mueller said there are still opportunities for the airline to grow in the long-haul segment, which he said, has grown by 25 per cent for the airline this year.

However, it is unlikely Aer Lingus will be seen in the Arabian Gulf in the near future.

Mueller, citing stiff competition from Etihad and Emirates, said the Gulf was not in the airlines plans. Etihad serves the Abu Dhabi-Dublin route under a codeshare agreement with Aer Lingus.