Aer Lingus decision may come next week

News At One: Michael Halpenny, National Industrial Secretary of SIPTU, says the union is extremely surprised that the minister has not consulted further on the questions it raised
News At One: David Murphy, Business Correspondent, reports on the minister's remarks today indicating he is pressing ahead with privatisation
Morning Ireland: Listen to the main business news with John Murray
One News: David Murphy discusses the likely makeup of the shareholding after flotation
One News: David Murphy, Business Correspondent, reports on SIPTU reaction to comments by the Minister for Transport, Martin Cullen

Tuesday, 28 March 2006

Minister for Transport Martin Cullen has said a stock market flotation of Aer Lingus is the 'most favoured option' for the airline.

He said the Government hoped to make a final decision on the issue next week. While the Cabinet has agreed to privatise the airline, this morning's statement by the Minister confirms that it favours a flotation over selling the airline to another company.

Trade union IMPACT has backed a sell-off of the airline subject to certain conditions, while SIPTU remains opposed.

The Minister made the comments as the airline launched a new route to Dubai. He added he wanted to see Aer Lingus given additional capital, but the State would not be making that investment.

Earlier, Aer Lingus chief executive Dermot Mannion told RTE radio that he still hopes the airline will be floated on the stock market before the summer. He said the best time would be before the end of June.

Aer Lingus's Dublin to Dubai service, which runs three times a week, is expected to carry 70,000 passengers in its first year of operation. This is Aer Lingus's first new long-haul route outside its transatlantic service. The company has also signed an agreement with the airline Emirates, which will enable passengers to fly on to 21 further destinations in the southern hemisphere from Dubai. The flights from Dublin will take seven hours.

SIPTU said its members were 'extremely surprised' at the Minister's comments. National industrial secretary Michael Halpenny said Mr Culle had undertaken to meet ICTU and the unions in advance of any Cabinet decision. SIPTU members are due to conclude a protective ballot for industrial action on Thursday.