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Budget airline Ryanair launched a new takeover bid Monday for Aer Lingus, seeking to capitalize on labor unrest at its Irish rival and Ireland's economic difficulties.

Cash-rich Ryanair Holdings PLC (nasdaq: RYAAY - news - people ) said it would pay euro1.40 ($1.78) a share for 70 percent of Aer Lingus Group PLC, a 25 percent premium over Monday's opening stock price. Ryanair initially tried to acquire Aer Lingus two years ago and already is the airline's biggest shareholder with a 30 percent stake.

Aer Lingus issued a brief statement urging its shareholders "to take no action" and promising a more substantial response soon. Its shares were 14 percent higher at euro1.28 ($1.62) in midday trade on the Irish Stock Exchange. Ryanair fell 2.4 percent to euro2.86 ($3.61).

Ryanair's offer price values Aer Lingus at euro748 million ($945 million).

The Irish government and Aer Lingus employee-controlled trusts - the other two major shareholders - offered no comment.

Ryanair Chief Executive Michael O'Leary argued that both should sell now to Ryanair: the government because it faces a fiscal crisis, and the work force because Ryanair would offer increased employment security, benefits and investment income.

"The world has changed dramatically over the past two years, as high oil prices and deep recession have caused a flood of airline bankruptcies, consolidations and capacity cutbacks," O'Leary said. "Aer Lingus, as a small, stand-alone, regional airline has been marginalized and bypassed as most other EU flag carriers consolidate."