Walsh backs move to sell stake in airline

The decision by the Government to sell a majority stake in Aer Lingus was described yesterday by the airline's former chief executive…

The decision by the Government to sell a majority stake in Aer Lingus was described yesterday by the airline's former chief executive Willie Walsh as a "step in the right direction".

Speaking at the Chambers of Commerce of Ireland annual conference in Cork, Mr Walsh also welcomed moves to build a second terminal at Dublin airport, saying he was pleased to see an end to months of political wrangling over aviation policy.

"It is a good day for Aer Lingus. The critical issue is additional capacity at the airport . . . It is a positive development that they build a terminal and I think who owns it and runs it is another issue. Personally, I am in favour of competition when it comes to the provision of services."

Mr Walsh said he was heartened by recent aviation developments in Ireland but expressed concern that the Government had decided to appoint "yet another set of advisers" on the privatisation of Aer Lingus.

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Mr Walsh, acting chief executive designate of British Airways, claimed he had no regrets about leaving Aer Lingus as he always worked to ensure the airline's continued success.

BA had as yet to consider whether to buy in to Aer Lingus, he said. He hoped the "good relationship" would continue between the two airlines.

"The issue [ of buying in to Aer Lingus] hasn't been considered in British Airways. There is a good working relationship in BA and Aer Lingus through our relationship with World Alliance and I am certainly hoping that relationship would continue."

Meanwhile, Fine Gael leader Enda Kenny has called Minister for Transport Martin Cullen to stand by the Government's promise to transfer outstanding debt from Cork airport to the Dublin Airport Authority (DAA).

Mr Kenny's comments came at a business lunch in Cork after a visit to the airport yesterday.

He said Cork was embarking on one of the most exciting phases in its history with the construction of the new terminal and the arrival of transatlantic flights.

However, he argued, Mr Cullen was jeopardising the future of the airport by refusing to transfer its debt to the DAA.