Aer Lingus Chief Executive Dermot Mannion said he is certain the company will remain an independent entity despite Ryanair's takeover attempt.
Speaking to RTÉ News, Mr Mannion said the Ryanair bid was not entirely a surprise. He said there was always the possibility that some airline would make a move on Aer Lingus once it was floated.
This evening, shares in Aer Lingus closed up another €0.08 to €2.98 in Dublin, a gain of almost 3%. Ryanair closed up €0.13 to €8.80.
The Government is continuing to examine the strategic and policy implications arising from Ryanair's efforts to obtain a majority stake in Aer Lingus.
The Taoiseach, Bertie Ahern, yesterday ruled out the sale of the Government's stake in the airline, while the Aer Lingus board rejected the takeover bid and urged shareholders not to respond.
Mr Ahern said any proposal of this kind would require regulatory clearance and it remained to be clarified whether it was a matter for the relevant Irish authorities or for the European Commission.
Meanwhile, a London-based aviation expert has said union fears of a possible takeover are likely to be justified.
Lloyd Brown, of consultants Ernst and Young, said the Ryanair Chief Executive Michael O'Leary's record spoke for itself.
The Minister for Transport, Martin Cullen, is consulting his advisers on the issue and is to set out the position more fully at an appropriate time.
