Ryanair described as "wild speculation" a newspaper report that said the carrier planned to cut 1,000 jobs at Irish operator Aer Lingus if its takeover bid succeeds.

Europe's biggest low-cost operator made the surprise cash offer for Aer Lingus on Thursday in a deal that values its target at EUR1.48 billion euros (USD$1.86 billion) -- 27 percent above the price at which its flotation was launched last week.

Ryanair said it planned to retain Aer Lingus's staff and management and for Aer Lingus to maintain its current long and short-haul business model -- but that Ryanair would help it to drive down costs.

In turn, Ryanair would benefit from Aer Lingus's superior earnings yield, which is better than the returns Ryanair can get on its cash deposits.

The Irish Independent newspaper reported on Saturday that Ryanair boss Michael O'Leary would immediately move to sack 1,000 Aer Lingus employees -- just under a third of its workforce -- if the takeover succeeded.

"It is understood the move is part of a detailed rationalization plan which Ryanair has prepared and which it believes will reduce Aer Lingus's annual EUR800 million (USD$1 billion) costs by EUR150 million (USD$189 million)," the paper said.

The paper said Ryanair would begin by outsourcing Aer Lingus' catering department, which employs about 200 people, and would then look to cutting most of the staff at the company's 100-strong American operations.

It did not say where it got the information.

"All that is just wild speculation -- nothing more," Ryanair responded in a brief statement.

"Ryanair's offer confirms its intention to lower Aer Lingus' short haul fares by at least 10 percent over the next 4 years and to reducing Aer Lingus' fuel surcharge," it added.

O'Leary said on Thursday he planned to continue a rationalization plan already underway at Aer Lingus if Ryanair's offer was successful.

Ryanair faces opposition to the deal from Aer Lingus management, unions and the Irish government, which has a 28 percent stake in the carrier.

Shares in Aer Lingus climbed on Friday as investors speculated the budget carrier would have to raise its surprise offer for the group given the fierce objections to the deal.

Analysts have said the deal seems attractive for shareholders in Aer Lingus, which launched its initial public offering at 2.20 euros a share last week -- 60 cents below Ryanair's bid -- but the advantages for Ryanair were less clear.