Formal discussions on the negotiation of an employee share option plan at Aer Lingus are expected to begin early next month.

But at a reading of the Bill, to enable the flotation of the airline, to the Seanad yesterday, the Minister for Public Enterprise, Ms O'Rourke, repeated that no more than 14.9 per cent of the company would be available. Eireann was floated last summer.

This means 9.9 per cent of the airline will be the subject of the ESOP, as staff already hold 5 per cent of the company.

Yet IMPACT, the union representing Aer Lingus pilots, has said it wants an additional 14.9 per cent.

SIPTU, which is consulting its members, has yet to finalise its position, a union spokesman said.

In the Seanad, Ms O'Rourke said she was hopeful the flotation could be completed "in the latter half of this year or early 2001".

But people close to the process believe a flotation this year would be less likely if the Bill does not pass all stages of the Oireachtas before the summer recess and the end of this month.

This will not happen, although the Bill is expected to pass the report and committee stages of the Seanad before the recess.

No slots were available in the Dail diary to discuss the Bill before the recess, it is understood.

There is a sense, however, that it could be pushed through the Dail early in its next session, which begins in October.