Ryanair boss lashes Aer Lingus over 'lies'

A huge airline row broke out today as Ryanair boss Michael O'Leary accused the board of Irish rival Aer Lingus of lying to its investors.

Aer Lingus today posted a €17 million (£15.7 million) loss for 2008 but warned that 2009 will be even worse, and it would therefore miss its City forecasts.

The losses appear to contradict comment by Aer Lingus before Christmas when it was fending off a €700 million takeover bid by Ryanair, which owns almost 30% of the carrier.

Aer Lingus said in its defence document: "Aer Lingus is and will be profitable. We expect to achieve profit overall in 2008.

"We expect that significantly reduced fuel prices and a number of management cost reduction initiatives will enable Aer Lingus to continue to enhance profitability in 2009 and beyond."

O'Leary, who plans to complain to the London and Dublin stock exchanges and the Takeover Panel, today said the results "prove conclusively" that Aer Lingus misled shareholders and the Stock Exchange.