Aer Lingus decision to be made by Christmas
The Government is to decide on the privatisation of Aer Lingus before Christmas.
The issue will be discussed today at a Cabinet sub-committee meeting, attended by Taoiseach Bertie Ahern, Tánaiste Mary Harney, Minister for Finance Brian Cowen and Minister for Transport Martin Cullen.
A Government spokesman confirmed the sub-committee would be studying the options outlined in the recent Goldman Sacchs report on the airline. These include a stock market floatation similar to the eircom privatisation, an injection of funds from private investors or no action at all.
In an interview with RTÉ’s Week in Politics programme, Education Minister Mary Hanafin said the decision on the future of Aer Lingus would definitely be made before Christmas.
The national carrier has been pressing the Government for a decision because it wants to raise up to €1bn over the next five years to fund its expansion. Under current EU regulations, it would be difficult for the Government to grant the company this money in state aid.
SIPTU, which represents workers at Aer Lingus, said it was not aware of the Government’s plans for privatisation.
“No case has been presented to the union at this point in time supporting privatisation or part-privatisation and the union’s position remains one of opposition to the same,” said a spokesman.
Last week, Aer Lingus chief executive Willie Walsh and two other senior executives announced their resignation. Their proposal for a management buy out of the airline had earlier been rejected by Mr Ahern.
