Aer Lingus talks to conclude within weeks - Donohoe

Discussions about the takeover of Aer Lingus by IAG should be concluded within coming weeks, the Minister for Transport, Paschal Donohoe has indicated.

In a statement issued on Thursday afternoon, the Minister said that the Government’s steering group on the takeover proposal and its advisers had engaged further over recent weeks and that this engagement had been “useful”.

He said talks had focused on matters previously outlined by him and that IAG had provided further details on “issues of concern” to the Government. In earlier statements on the proposed deal, Mr Donohue has highlighted employment prospects, expansion plans and commitments on the Aer Lingus Heathrow slots as being particularly significant.

“ Discussions are progressing and as I have indicated previously I do not want this process to be drawn out unnecessarily and I expect that it can be brought to a conclusion in the coming weeks,” he said on Thursday.

Shares in Aer Lingus surged in trading on Thursday following reports of a rapprochement between IAG and the Government, which controls 25 per cent of the Irish airline. A deal on the Heathrow slots is seen as being most significant in the talks.

IAG is proposing to pay close to €1.4 billion for Aer Lingus. The stock was up almost 4 per cent at €2.38 on Thursday afternoon, having climbed higher earlier in the day.