Commercial Aviation

Irish government to sell Aer Lingus stake to IAG

49d4e5e081d61109c5f9f179f7cd7744The Irish government is to sell its 25-percent stake in flag carrier Aer Lingus to International Airlines Group after receiving assurances on the airline’s future, the transport minister said. The proposed offer is valued at $2 billion. “The government has decided that it will support IAG’s proposal,” minister Paschal Donohoe said in a statement. The sale has been a hot topic for Dublin, with severe opposition within the junior government coalition party, Labour, and from unions who warned about implications for jobs and connectivity.

International Consolidated Airlines Group’s (IAG) proposed 1.36 billion euro ($2 billion) offer for Aer Lingus was recommended by the Irish airline’s board in January but is still conditional on receiving the support of its other main shareholder, Ryanair.

The government, which has been urged by opposition parties and trade unions to reject the IAG offer and also faced objections to the offer from some government MPs, had said that Ryanair’s attitude was key to its decision.

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