Etihad willing to sell Aer Lingus stake to IAG

Etihad Airways is willing to sell its stake in Aer Lingus to long-time suitor, International Consolidated Airlines' Group (IAG), according to the gulf carrier's chief executive, James Hogan.

Speaking at an industry conference in the US on Wednesday, Mr Hogan confirmed that Etihad would sell its 4.11 per cent stake in Aer Lingus should IAG succeed in taking over the Irish airline, which it has been pursuing for three months.

"If they take control ... you will most likely see us no longer being a shareholder," Mr Hogan told aviation industry news service, Flightglobal, on the sidelines of the US Chamber of Commerce aviation summit in Washington DC.

Etihad upped its stake in Aer Lingus to 4.11 per cent from 3 per cent in 2014, making it one of the bigger shareholders after the State, which holds 25.1 per cent, and Ryanair, owner of 29.8 per cent.

When the Government signalled its willingness to sell the State’s holding in Aer Lingus in 2012, the gulf airline was tipped as a possible bidder for the shares.

Mr Hogan on several occasions said that the company would be interested in increasings its holding in the former Irish flag carrier.

However, Etihad has not made any public comment since it emerged in December last year that IAG had approached the Aer Lingus board with a take over proposal.

The group has since said it is willing to offer €1.36 billion for Aer Lingus, but has made any deal conditional on getting acceptances from both the Government and Ryanair.

IAG’s representatives are due to meet a Government group, which is reviewing its proposal this week.

The talks are likely to focus on guarrantees that the group is offering in relation to Aer Lingus’s valuable access rights in London’s Heathrow Airport.

IAG owns British Airways, Iberia and Vueling.