If the price is right, it's time to sell Aer Lingus
The Government objections to selling their stake in Aer Lingus just don't hold water - the risk is in not selling
Opposition to the proposed IAG takeover of Aer Lingus is based principally on local politics and on trade union rivalry. Government deputies fear the loss of their seats and have been stoking fears among Aer Lingus staff, especially in north Dublin. Deputies of all parties representing the Cork and Shannon airport catchments have been seeking assurances about continued service to those airports, including assurances not available.
The fears being fostered are largely groundless, in the sense that IAG is not planning to part with €1.36bn for the privilege of dismembering a profitable acquisition. The interest and responsibility of the Government as shareholder is also being overlooked. The Government owns just 25pc of the Aer Lingus shares and cannot control the company's decision-making under the current set-up. There is no other bidder, the Aer Lingus board has recommended the offer, and the principal interest of shareholders is to consider whether they agree that the offer is adequate.
The principal concerns of politicians appear to centre on the continuation of services from Irish airports to London Heathrow, the main hub of IAG's subsidiary British Airways, and the commitment of IAG to further development of the Aer Lingus transatlantic operation. IAG chief executive Willie Walsh offered assurances on both points at the Oireachtas transport committee and in subsequent discussions with Aer Lingus trade unions.
