Aer Lingus sale fails to get state support

But government does not have power to stop sale

Politicians in Ireland have refused to back the proposed €1.3 billion purchase of Aer Lingus by International Airlines Group, despite an earlier recommendation of a sale by the board of the Irish airline.

As previously reported, the Irish government owns a 25% stake in Aer Lingus. Reports from Ireland suggest that the current government there may be “hardening its stance” against any sale of its shareholding. However, it does not have the power to stop the sale to IAG if it is backed by other shareholders, which include low-cost carrier Ryanair.

In the Irish parliament, Prime Minister Enda Kenny declined to support the bid by IAG, which owns British Airways, Iberia and Vueling, while transport minister Paschal Donohoe said there were “important considerations” to be examined in the offer.

Both ruling parties in Ireland – Labour and Fine Gael – have held private meetings in recent days to discuss the future of Aer Lingus.

TTG Digital