RYANAIR boss Michael O’Leary believes staff at Aer Lingus could yet support his surprise £1 billion bid for the Irish national carrier despite the trenchant opposition of trade unions and the Dublin government.

O’Leary told The Sunday Times that the cash offered — €2.8 a share — was a powerful incentive to airline workers, and that a way could be found around potential tax penalties.

Individual Aer Lingus staff own thousands of shares through an employee share ownership plan (Esop), that amounts to a 12% stake.

“There are baggage handlers here in Dublin who could be looking at €60,000. I would be very surprised if the Esop does not in the end vote in favour of our bid,” O’Leary said.

Sources close to Aer Lingus scoffed at the idea that the Esop might vote for O’Leary, saying the special tax advantages enjoyed by the scheme would be lost if the bid was accepted.

“The other point is that most of the staff at Aer Lingus frankly regard O’Leary as the devil incarnate,” said one company adviser.

The Ryanair bid came only days after Aer Lingus floated in Dublin and London.

Ryanair is expected to issue an offer document within weeks. City sources said it was likely the airline would gauge the attitude of competition authorities to its bid, and then consider an increase, perhaps up to €3 a share.

O’Leary said he would be happy to achieve a majority stake in Aer Lingus. By Friday he had accumulated just under 20%. The Irish government has kept a 28% stake following the float.

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