Attitudes of some Labour TDs on Aer Lingus sale ‘shifting’

There has been a shift in attitudes among some in the Labour Party over the past week and half towards selling the State's shareholding in Aer Lingus, according to a number of sources in the junior Coalition partner.

Many in Labour have objected to selling the 25 per cent stake to International Airlines Group (IAG), particularly TDs and Ministers in north Dublin and the Midwest region.

Aodhan O’Ríordáin, the junior justice minister and Dublin Bay North TD, said he “remained to be convinced”.

However, a significant number of ministers contacted by The Irish Times said selling to Willie Walsh led IAG would make commercial sense and could be in the best long term interests of the airline.

Some noted it may be politically difficult to do so.

Mr Walsh has offered five year guarantees on Aer Lingus Heathrow slots but a longer guarantee, as much as ten years, is needed, and reassurances on the security of cabin crew jobs, said one Minister.

A number of Ministers also expressed concern the party could be left exposed if it objected to the sale and unions such as Siptu and Impact subsequently struck a deal with Mr Walsh.

A senior party source last night said many in Labour are coming around to the idea of selling the 25 per cent stake, provided further guarantees are given by IAG.

“(It’s) far from universal but if a better deal with stronger guarantees could be hammered out, that would appeal to some of ours,” the source said. “For the most part this depends on the workers, though.”

“We don’t want to be left out on a limb by the unions,” said one. “If they feel a deal is in the best interests of their members, they will support it and we have to be aware of that. I have had more people contacting me saying we should sell rather than keep it.

“There is a sense that some people are doing what they believe Labour should do, but we don’t want to be heroes for the unions.”

One deputy said a key factor would be if Impact and Siptu members began urging Labour TDs to accept any deal, while another Minister said of a possible deal: “It’s definitely on.”

The rivalry between Siptu and Impact at Aer Lingus was also cited by one source as something Labour should be wary of.

At Cabinet level, party sources suggested Minister for Communications Alex White and Minister for Public Expenditure Brendan Howlin would be open to a sale, while Minister for Environment Alan Kelly and Minister for Education Jan O'Sullivan would not.

Tánaiste Joan Burton’s attitude is not known, but senior Coalition sources have indicated a sale is unlikely one year out from a general election.

A number of weeks ago, Mr White said he had an open mind on the sale and it is understood he was criticised by a number of people in the party for doing so.

Former minister Pat Rabbitte expressed support for a sale at the weekend but one sources said Mr Rabbitte "wouldn't speak for the entire parliamentary Labour party".