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Markets News Afternoon: Ryanair's O'Leary accuses Cowen of lying as truth behind Dublin Airport saga remains unclear; Shares rise in Europe and US
By Finfacts Team
Feb 17, 2010 - 5:02:01 PM
Ryanair today rejected the "false claims" made by An Taoiseach, Brian Cowen in the Dáil this morning which mirrored equally "misleading claims"made by Tánaiste Mary Coughlan yesterday. In the Dáil this morning, An Taoiseach made what Ryanair claim as four false claims about Ryanair’s offer to create up to 300 jobs, if the airline was sold or leased the Hangar 6 heavy maintenance facility.
The lies according to Ryanair:
Lie No. 1
The Taoiseach claimed that Aer Lingus has a 20 year lease over the Hangar 6 facility and that this lease cannot be broken. This is untrue, since the Tánaiste at last night’s meeting with Ryanair confirmed that Aer Lingus’ 20 year lease has the same 12 month’s notice clause in it (as all DAA leases do), allowing the DAA to request Aer Lingus to vacate Hangar 6. The exercise of this Clause by the Govt owned DAA would not be a breach of the lease, and nor would it be breaking the law, as the Taoiseach wrongly claimed.
Lie No. 2
The Taoiseach claimed that there was a 24 months notice period in the Aer Lingus Hangar 6 lease. This is also untrue, since the Tánaiste at least evening’s meeting with Ryanair confirmed that the notice clause in the Aer Lingus Hangar 6 lease was 12 months. The fact that Aer Lingus have put very little into Hangar 6 (other than 95 line engineers) means that this facility could be vacated by Aer Lingus within 12 weeks which would allow Ryanair to start recruiting some former SRT engineers for heavy maintenance on Ryanair’s fleet from September 2010 onwards.
Lie No. 3
The Taoiseach claimed that there was “a competition” for the Hangar 6 facility. This is untrue. There was no such competition. Ryanair calls on the Taoiseach to publish the terms of this competition (since they don’t exist) and he should also confirm how Aer Lingus won this competition in November, when they created not one new job in the Hangar 6 facility, over Ryanair, which offered (last September) to create up to 500 jobs in the facility. How could an airline creating no jobs, win this alleged competition over an airline offering to create 500 jobs. The Taoiseach should explain this false claim.
Lie No. 4
The Taoiseach claimed Ryanair “did not make an offer” for Hangar 6. This is also untrue. Ryanair have published the written offers it made directly to An Tánaiste in August and September last year, offering to create up to 500 maintenance jobs in Hangar 6 on the basis that Ryanair would be sold or leased the Hangar 6 facility. The Taoiseach’s claim that Ryanair did not make an offer for the facility is false.
Finfacts opinion article on the Dublin Airport saga/media offensive:
Ryanair’s Michael O’Leary said today: “It is extraordinary that the Taoiseach has now allowed himself to be tied up in the same lies which have been put about by the DAA for a number of days now. The Tánaiste last night confirmed (1) that the DAA can require Aer Lingus to vacate Hangar 6, (2) this can be done within 12 months (although Ryanair believes it could be done within 12 weeks given that Hangar 6 is empty) (3) that Ryanair did make an offer for the Hangar 6 facility last September and (4) the claim that Aer Lingus “won” a competition in November last despite creating no new jobs whatsoever are all false claims.
“Ryanair calls on the Taoiseach to correct these false claims, or alternatively publish the terms of the competition he claims Aer Lingus won last year, and explain to the 800 unemployed SRT engineers on what basis Aer Lingus won this competition (when they have created no jobs and have no heavy maintenance hangar) over Ryanair who offered 500 jobs and can start putting heavy maintenance work into Hangar 6 from September of this year.
“The Govt have yet to explain (as the Tánaiste refused to at last night’s meeting) why they are allowing Aer Lingus and the DAA to block Hangar 6 which is currently empty, from an airline which is offering to create 300 jobs and allocate a large volume of heavy maintenance work to this facility. Why does the Taoiseach, the Tánaiste and this Govt willingly allow 300 aircraft engineers to draw the dole, while they preside over and defend Aer Lingus blocking the large heavy maintenance Hangar 6 facility, when all of Aer Lingus’ heavy maintenance has been contracted overseas for the next 8 years?”
President Obama discusses the effectiveness of the $787 billion stimulus package, which was signed into law one year ago today:
Eurozone
In the construction sector, seasonally adjusted production increased by 0.5% in both the Eurozone (EA16) and the EU27 in December 2009, compared with the previous month. In November, production fell by 0.8% and 0.4% respectively.
Compared with December 2008, output in December 2009 dropped by 3.1% in the Eurozone and by 3.3% in the EU27. Compared with 2008, average construction output index in 2009 decreased by 8.0% in the Eurozone and by 8.2% in the EU27.
These first estimates are released by Eurostat, the statistical office of the European Union.
The first estimate for the Eurozone (EA16) trade balance with the rest of the world in December 2009 is a €4.4bn surplus, compared with -€1.8bn in December 2008. The November 20092 balance was +€4.0bn, compared with -€6.9bn in November 2008. In December 2009 compared with November 2009, seasonally adjusted exports rose by 3.1% and imports by 1.7%.
The first estimate for the December 2009 extra-EU27 trade balance was a €2.5bn deficit, compared with -€11.3bn in December 2008. In November 20092 the balance was -€6.8bn, compared with -€24.4bn in November 2008. In December 2009 compared with November 2009, seasonally adjusted exports rose by 2.0% and imports by 0.5%.
During 2009, Eurozone trade recorded a surplus of €22.3bn, compared with -€54.7bn in 2008. The EU27 recorded a deficit of €105.5bn in 2009, compared with -€258.4bn in 2008.
China is no longer the world's biggest foreign holder of US debt after it sold a record amount of Treasurys. Thomas Byrne from Moody's Sovereign Risk Group told CNBC the move is not necessarily bad news for the economy:
US markets
US housing starts rose in January to a higher level than expected in a signal that government support is helping to stabilise the property market. The extension and expansion of a homebuyer tax credit is expected to boost demand in coming months while builders will have to contend with rising foreclosures and a high unemployment rate.
On the New York Mercantile Exchange, oil for March 2010 delivery is trading at $76.88 down 13 cents from Tuesday's close. In London, Brent crude for March delivery is trading at $75.74 a barrel.
Currencies
The euro is trading at $1.3647 and at £0.8680.
For live currency updates, check the right-hand column of the Finfacts home page.The dollar traded at a record low $1.6038 per euro on July 15, 2008.
"The market is pricing in another euro fudge; the EU has always fudged its way around fundamental issues," Julian Pendock from Senhouse Capital told CNBC Wednesday when discussing the outlook for stocks in the wake of Greece's debt problems: