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Government 'too vague' with demands


Aer Lingus

Aer Lingus

Aer Lingus

The Government has been accused of not publicly identifying what specific commitments it wants from IAG on Aer Lingus jobs and the Heathrow slots.

Analyst David Holohan of Merrion Stockbrokers said he was surprised by Transport Minister Paschal Donohoe's ultimatum, but said it shouldn't affect the airline's share price.

"It's one thing saying they want an answer, but what tangible change to the deal do you want IAG to make, and that still hasn't been forthcoming," Mr Holohan said. "They [the State] still haven't been able to quantify the number of years they want to guarantee the Heathrow slots for. They have been opaque regarding number of jobs they would consider a red-line amount."

Mr Holohan speculated that behind the scenes, IAG is preparing its final offer and that the Government is likely being more explicit about what it wants.

"There's an acknowledgement in the market that this is a political issue at the moment."

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