Government officials meet IAG on Aer Lingus

Government officials and representatives of the group that is bidding €1.36 billion for Aer Lingus discussed the basis on which the Coalition would consider a sale of the State's 25.1 per cent stake in the airline on Wednesday.

The Minister for Transport, Tourism and Sport, Paschal Donohoe, confirmed that a Government steering group met representatives of International Consolidated Airlines' Group (IAG).

The meeting was the first since the Coalition issued a statement last week outlining the basis on which it was prepared to give further consideration to IAG’s approach. Mr Donohoe said that this was discussed.

The Government also said last week that the terms offered by IAG were not sufficient for it to consider selling the 25.1 per cent, but indicated that it was open to a further approach from the airline group. Amongst other things, it said it wanted IAG to extend guarantees it is offering on services between the Republic and Heathrow Airport.

IAG is prepared to guarantee that Aer Lingus’s rights at Heathrow will only be used to service flights from Cork, Dublin and Shannon airports for five years if a deal goes through.

The Government declared that this was not enough and wanted the five-year period extended.

Mr Donohoe added that a further meeting is planned before the end of next week.