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No deal is agreed on Aer Lingus say Labour

A DUBLIN Labour TD has warned that his party still requires guarantees relating to the potential sale of Aer Lingus to IAG amid speculation that a deal has been agreed.

The government has been considering a €1.3bn offer from the airline giant to buy the national carrier.

Weekend reports suggested that an inter-departmental steering group advising the government on the proposed sale has reported to Transport Minister Paschal Donohoe and that both he and Finance Minister Michael Noonan have agreed to the deal.

A Transport Department spokesman last night said that Mr Donohoe has not yet received the steering group's report.

It's also understood that the proposed Aer Lingus sale is still not on the agenda for the Government's Cabinet meeting on Wednesday.

Despite that, a decision is almost certain to be imminent.

Dublin Central TD Joe Costello (inset) - one of a group of eight Labour TDs who've raised concerns about the proposal said that "nothing has changed for us" and that "vital concerns" such as guarantees about jobs and Heathrow slots need to be addressed in any deal.

"Any sale would have to be endorsed in a Dail vote and Labour's concerns must be addressed before all of us can troop in and vote for any sale," he said.