The Government must “turn back” from selling the State’s share in Aer Lingus, according to Fianna Fáil transport spokesman.

Clare TD Timmy Dooley accused Labour backbenchers opposed to the sale of the airline to IAG under the current terms of engaging in "political posturing" at their party conference at the weekend.

“They’re just fighting over the scraps of what’s left. It seems to me, if the background briefings are to believed, that this is effectively a done deal...I think it’s really an appalling situation,” he said.

“I fail to see any justification whatsoever for the decision or the request to sell the State’s interest.

“I think the Government need to rethink...and turn back. It’s not too late yet to retain the State’s shareholding on behalf of the Irish people to protect the strategic interest of an island nation.”

Mr Dooley was speaking at Leinster House on Monday at the launch of a revamped Fianna Fáil policy on the crisis in Irish towns.

Earlier, Tánaiste Joan Burton said she had seen strong suggestions in the media that IAG chief executive Willie Walsh was going to talk again to the various parties involved.

“I understand this week he’s meeting with the trade unions,” she added.

“We’ll see what Mr Walsh will be saying to the various parties this week.”

She described the discussion at the Labour conference as “extremely positive”.

She said people were interested in connectivity to and from Ireland; protecting employment in airports and the valuation of Heathrow slots.

Ms Burton said the discussion laid out not just what people in the Labour Party were interested in, “but I think what almost everybody in Ireland is interested in seeing”.