The Minister for Transport, Mr Cullen, has promised that no conflicts of interest will be allowed to develop at Aer Lingus regardless of future plans of the departing management team.

The three-man management team, chief executive Mr Willie Walsh, chief financial officer Mr Brian Dunne and chief operations officer Mr Seamus Kearney, are expected to leave shortly. They are set to develop their own airline project, in conjunction with key investors. The project is expected to concentrate heavily on transatlantic routes.

Mr Cullen said while appropriate corporate governance arrangements were in place, he was determined to ensure no conflicts of interest would arise. However, he said the ultimate responsibility for such matters rested with the Aer Lingus board.

He said the three executives had met Aer Lingus chairman Mr John Sharman and reports about the executives' plans had been discussed. "The chairman is today having discussions with the three executives relating to current media speculation. A conflict of interest cannot, should not and will not be allowed to arise between their current roles at Aer Lingus and their future career intentions," said Mr Cullen in a statement.

Speculation continued last night about the three managers' role at the company. They were due to remain at the airline until the company's 2004 accounts were signed off, but this may not happen now. Record operating profits in excess of €105 million will be announced shortly.

All three have indicated a willingness to remain until May, but so far the airline has not asked them to leave any earlier.

Meanwhile, Opposition parties said a new Irish airline could "destroy" Aer Lingus.

Fine Gael's transport spokeswoman Ms Olivia Mitchell said: "A new threat from a dynamic, young low-cost airline is the last thing the now leaderless Aer Lingus needs. It is particularly vulnerable to low-cost competition on the transatlantic routes and the loss of this business would destroy the State airline," she claimed. "If proof were needed that 100 per cent State ownership is the least appropriate ownership structure for a rapidly changing industry, then this is it. Aer Lingus is no longer a master of its own future, but a victim of the decisions of others."

The Labour Party spokeswoman on transport, Ms Róisín Shortall, said Aer Lingus had been allowed to drift by the Government. "With a new low-cost carrier in the offing, there is now a greater sense of urgency for the Government to reach a firm decision on the future of Aer Lingus."