Aer Lingus aircraft buy approved

By Andras Gergely

DUBLIN (Reuters) - Aer Lingus shareholders on Thursday approved the purchase of 12 Airbus aircraft ordered last June, although Ryanair, which has a 29 percent stake in its fellow Irish carrier, voted against.

Aer Lingus, which entered partnerships with U.S. carrier United Airlines this week and with JetBlue in February, hopes the new long-haul aircraft would support its expansion plans, especially on transatlantic routes.

"The board believes that the Aer Lingus purchase agreement underpins Aer Lingus' growth strategy," Chairman John Sharman told shareholders at an extraordinary general meeting.

Last month the former state airline said it could not give a profit outlook for this year because of uncertainties about the economic outlook and oil prices.

Chief Executive Dermot Mannion said on Thursday that the uncertainty remained. But he added: "We're cautiously optimistic about managing to grow traffic going forward even in a tough market."

MARKET DOWNTURN

Ryanair, which has a stake in Aer Lingus following a failed takeover bid, voted against buying the new aircraft, saying that they could have been bought more cheaply.

"This order was negotiated some 12 months ago (May'07), at or very close to the top of the last aircraft value cycle," Ryanair said in a letter to Aer Lingus explaining its vote and seen by Reuters.