Noonan says ‘national interest’ deciding factor in Aer Lingus sale

Finance Minister Michael Noonan has insisted that any Government decision in relation to the sale of Aer Lingus to IAG will be in the "national interest".

Speaking in Limerick today he reiterated the Taoiseach’s stance that connectivity and jobs will be the two key considerations on the matter.

"Minister [for transport]Paschal Donohoe will set out the policy and advise the Government. I am actually the shareholder. I hold the shares on behalf of the Irish state and I have been legally advised it would be inappropriate for me to comment in any way as we are in what they call an offer period this morning.

"But I think things are changing and I check Bloomberg every morning. This morning one of the Gulf carriers has offered to buy almost 10 per cent of AIG and it looks as if that's an acceptable bid, so there's a change imminent as well in the parent group that are bidding for Aer Lingus.

“I would refer you to what the Taoiseach said yesterday and I think it’s the Government’s position that anything the Government decides will be in the national interest and in the interest of connectivity and jobs and in the interest in the country.

“There are only two ways of getting on and off of this island, whether by boat or by plane so we want to make sure everything works out very satisfactorily.”

The Minister for Finance has said he will not be commenting on the proposed IAG bid for Aer Lingus.

Minister Noonan has said he has been prevented from doing so because of legal advice.

“I don’t want to be disobliging, but I’m in a difficult legal position because even though the Department of Transport will set out the policy and advise the government, I’m actually the shareholder, I hold the shares on behalf of the Irish State.”

“I have been legally advised that it would be inappropriate for me to comment in any way as we are in what they call an offer period this morning.”

The Minister has said that the whole landscape about surrounding the bid is in flux, “...this morning one of the Gulf carriers has offered to buy almost 10 percent of AIG [SIC]and so there is a change imminent as well in the parent group that are bidding for Aer Lingus.”

There is growing pressure within the government ranks over the implications for the economy of Ireland if the sale of the former national carrier proceeds.

IAG values the company at around 1.4 billion, which would net the government in the region of 345 million euro.

Regional business groups are also sounding the alarms bells about what impact any sale will have in areas such as Limerick and Cork, who rely on direct connectivity with London Heathrow as a unique selling point in attracting foreign direct investment into their regions.