Ryanair Holdings Plc (RYAAY,RYA.L), a 29.8% shareholder in Aer Lingus, instructed its lawyers to postpone any further legal action against Aer Lingus plc, to prevent Aer Lingus (AERL.L) making any top up contributions to its defined contribution pension schemes, following the unequivocal and public assurances made by Aer Lingus CEO Mr Christoph Mueller during the company's annual results last week. On behalf of Aer Lingus, Mueller has ruled out any pension fund top-up, and also confirmed that Aer Lingus' participation in recent Labour Relations Commission talks was "through a moral obligation to the employees, more than anything else".
Ryanair said it welcomes this definitive and unequivocal assurance by Aer Lingus to its shareholders and staff that it would not make any further contributions to its pension schemes over and above its existing fixed contribution rates, and believes that all Aer Lingus shareholders would take comfort from Mueller's unequivocal assurances.
Further, Ryanair has advised Aer Lingus that should the company or management attempt to resile from this unequivocal position concerning its defined contribution pension schemes, then Ryanair would restart its legal action against Aer Lingus in order to protect the interests of all Aer Lingus' shareholders and prevent these funds being wasted yet again by Aer Lingus on further contributions to Aer Lingus' DC pension schemes.
by RTT Staff Writer
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