Thursday, July 06, 2006

Anyone want to own an airline?

The Irish Government has announced that a majority share in Aer Lingus will be sold to private investors by October. I'm in favour of selling off some or Aer Lingus, it's not like any of us get free flights in exchange for the share of our tax that goes to fund the airline.

The strange thing is the government and media are talking up the fact that the general public will be able to buy shares, so long as they invest a minimum of 10,000. Hmm, that's just about the share of their SSIA many people would be willing to reinvest once they have splurged a little. Coincidence? Of course if you do invest in Aer Lingus you'll probably have to spend years listening to employees complaining and striking when the notion takes them. Alternatively you could fire the lot of them and sell the planes to Michael O'Leary, he'd love the chance to be photographed painting over the Aer Lingus green with Ryanair blue.

You would think the government had learned about the dangers of mixing voters and the stock market after the Eircom disaster. Though then again they probably assume most voters have short memories, they do vote the same government in every 4 to 5 years.

1 comment:

-Ann said...

The other ridiculous thing is that it's not even like anyone or group is going to be able to buy the whole airline. With the government's shares, the employees' shares, and the other conditions, you're actually buying a hobbled, small interest in the airline. Which is fine, but it's not going to raise enough to make this all worth it.