Aer Lingus chairman Colm Barrington has denied claims by fellow airline Ryanair's chief executive Michael O' Leary that Aer Lingus's board has "continually ignored" Ryanair, which has a 30% stake in its rival.

O' Leary wrote to Aer Lingus earlier this month demanding that it pay a special dividend given the improvement in its cash position. He accused Aer Lingus's board of mismanagement, pointing to the sharp decline in the company's share price since 2007.

But in his letter to O' Leary, Barrington responded that the board agreed to discuss the dividend issue at its annual meeting in May.

"We have a comprehensive programme of meetings with major shareholders (and have met Ryanair in that context) following publication of our half year results and we will be hosting an investor day at the end of this month (to which Ryanair has been invited)," he added.

"All shareholders are welcome to express their views at these and other forums, and their reasonable opinions are considered following them."

Barrington said that far from ignoring Ryanair, one of the greatest concerns Aer Lingus's board heard from shareholders is Ryanair's stake.

"We welcome your recent statements that Ryanair would be prepared to dispose of its shareholding in Aer Lingus and we would hope to have constructive conversations with you on this issue," he said.

He said that Ryanair has no right to force Aer Lingus to pay a dividend.

"Disagreeing with the demands of a shareholder (and our largest competitor) whose record includes a series of attempts to devalue Aer Lingus for its own ends is quite different from ignoring shareholders who want to assist us in creating value for Aer Lingus and all of its shareholders; to which the Board and Management are fully dedicated," he said.

Earlier this month, before writing to Aer Lingus, Ryanair responded to speculation that the Irish government is selling its 25% stake in Aer Lingus by saying that it would consider selling its own stake to any buyer of the Irish government's stake.

International Consolidated Airlines, the British Airways owner, had been suggested as a possible buyer of Aer Lingus although this was ruled out by chairman Willie Walsh.

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RG

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