Kevin O'Toole/LONDON
FLS Aerospace has shelved its acquisition talks with Team Aer Lingus, after workers at the Irish aircraft maintenance unit voted against a deal. The Danish group says that it is prepared to revive the bid, if workers have a change of heart, and will meanwhile continue to pursue other for expansion opportunities in Europe and North America.
The FLS bid, which has been mired in Irish politics, was finally suspended on 27 May after only 41% of the Irish maintenance employees voted in favour of transferring their contracts from Aer Lingus to the new group.
The workforce still hold "letters of comfort" which give binding guarantees over their continued employment within the Irish airline group and effectively provide a veto over sale of the unit.
Aer Lingus, which is keen to secure the sale of its loss-making maintenance unit, had offered to buy out the guarantees for IR£55 million ($80 million), which roughly translates into a year's annual tax-free salary for each of the employees. Despite broad agreement on the plan, including the assent of unions and belated support from the Irish Government, the deal was clearly rejected.
"The biggest assets of a company are its people and if they vote against it we cannot be interested," says Steffen Harpøth, chairman of the FLS Aerospace maintenance business, adding that the bid "will still be there if minds change" and Aer Lingus can achieve "much stronger support for the proposal".
Harpøth admits to "surprise" at rejection of the offer for Aer Lingus. "We had no plans to make people redundant, but to grow and enhance the business," he says. FLS will continue with its expansion plans through a mix of organic growth and the acquisition of existing maintenance centres. The main focus for new growth will be continental Europe but FLS is looking at deals in North America.
Privately within FLS there are some signs of irritation over the failure by Aer Lingus and its Government owner to sell a favourable deal to the workforce.
Source: Flight International
