Aer Lingus gets a reality check

Aer Lingus's move to join up with British Airways and the powerful Oneworld alliance is a case of bowing to the inevitable

Aer Lingus's move to join up with British Airways and the powerful Oneworld alliance is a case of bowing to the inevitable. Th airline simply cannot hope to remain profitable as an isolated non-aligned airline in a rapidly consolidating industry. As it is, it is the second last of the European state airlines to find a partner - only debt-laden Olympic Airways of Greece remains.

Finding a partner was also essential in terms of providing an attractive option to investors when an initial public offering in the airline eventually arrives to fund much-needed investment.

Good news all round then? So it would appear, except that Ministers Mary O'Rourke and Mary Harney seem divided over the wisdom of allowing British Airways and American Airlines take a 10 per cent stake in the group. Quite why is unclear, especially as both favour privatising the group later on.