The sale of the State's Aer Lingus share would create jobs, Minister for Transport Paschal Donohoe told the Dáil. "It is envisaged that by the end of 2016, a new net 150 jobs will have been created in Aer Lingus , rising to a new net total of 635 jobs by 2020," he said.
The Minister said the Aer Lingus brand would be protected and its head office retained in Ireland. The airline would operate all its scheduled international air transport services under the Aer Lingus name, he added.
Mr Donohoe said the sale would strengthen Aer Lingus’s competitive positions, reduce risk to the company and provide it with the opportunity with a larger group to face the challenges in a changing aviation environment.
It would promote Ireland’s wider connectivity, he added, and could bring growth to our airports. It was anticipated the move would bring benefits to both Aer Lingus’s long-haul and short-haul networks within the IAG group.
“There will be a focus on sustaining and growing routes from Dublin, Cork, Shannon and Knock,” Mr Donohoe added.
He said Aer Lingus was no longer our national flag carrier. That decision was taken nine years ago when 75 per cent of the shareholding was sold.
“Nor is the State the majority shareholder in the company. We own a minority 25.1 per cent shareholding and I want to use the opportunity now to maximise the benefit of that residual shareholding to put the company on a firm footing for the future while protecting key general national interests.”
Fianna Fáil spokesman Timmy Dooley said he could not get his head around the necessity, from the Minister's perspective, to sell the remaining stake in the airline. A decision was taken in 2006 to change Aer Lingus's semi-State status and trade it publicly, thereby ensuring it would be run on a commercial basis in the best interest of all, including workers, passengers and the country, he added.
“For the life of me, I cannot understand how the Government has failed to realise the importance of retaining the shareholding and having control, although not absolute control, over the direction of the company or an input into it,” Mr Dooley said.
Aer Lingus had successfully emerged from the worst financial crisis in the State’s history, or one of the deepest in the OECD, as a lean and growth-oriented company with very significant cash reserves to take on the kinds of challenges that would arise.
Sinn Féin spokesman Dessie Ellis said it was very sad to express an opinion on what was a done deal that nobody outside of IAG and Fine Gael wanted.
"The Government has made its decision behind the closed doors in a shrewd media operation which shows blatant disregard for the Oireachtas and its role in dealing with issues of such importance," he added. "No matter what anyone says, the Government will seek to sell its share in Aer Lingus and the weak and cowed Labour Party members will go along with it."
