A war of words between Aer Lingus and major shareholder in the struggling airline, Ryanair, has escalated with both sides accusing each other of damaging the struggling airline.

Aer Lingus, which last week reported a loss of £65 million, has accused Ryanair of ‘doing a lot of damage’ to its share price.

Aer Lingus chairman, Colm Barrington, said on Irish radio that Ryanair had adversely affected the company’s share price as it launched two takeover bids.  He also said that job and pay cuts were imminent to help the airline survive.

Europe’s largest low cost carrier hit back at the claims, insisting that the Aer Lingus board was alone to blame for the poorly performing share price.

“The person who has damaged Aer Lingus is Colm Barrington, who as chairman eight months ago recommended rejection of Ryanair’s offer of €1.40 per share, only to preside over a share price collapse to less than 50 cents in August,” a Ryanair spokesman said.

“Mr. Barrington promised shareholders in December that Aer Lingus ‘is and will continue to be profitable’ only to announce substantial losses for 2008, and increased losses in 2009. Without Ryanair’s 30pc shareholding, we believe Aer Lingus’s shares would have collapsed even further.”

Aer Lingus claims it would not be surprised by yet another takeover bid from Ryanair.

Thanks to the Telegraph for the above quotes.  For more information visit their website.