Sharman likely to stay on at Aer Lingus

Aer Lingus chairman John Sharman is likely to be given a new mandate when his term of office expires in five weeks' time, according to informed sources.

Speculation about the airline's chairmanship follows the reappointment to the board several weeks ago of Chris Wall, a close political associate of Taoiseach Bertie Ahern. Mr Wall was reappointed just before Christmas for the period from December 23rd until the 2007 annual general meeting of the airline. This previously unreported development was notified to the stock market on December 22nd.

While the prestigious post of Aer Lingus chairman was in the gift of the Government until the airline was floated last autumn, the nomination of a chairman now falls to a subcommittee of the airline's board. This matter has not yet been formally discussed by the board, but it is now considered increasingly likely that Mr Sharman will be asked to serve another term.

It was previously believed that the airline's flotation would be followed in March by Mr Sharman's departure. However, the situation changed when Ryanair made a bid for Aer Lingus immediately after the flotation.

Given the desire for continuity amid such activity and the possibility of a further bid for Aer Lingus, it is now anticipated that Mr Sharman will stay on. Some sources believe it would be considered unusual were he to depart, given that the airline is still in a defence period.

Anglo Irish Bank chairman and Aer Lingus director Seán FitzPatrick, who previously turned down the chairmanship of the airline, was mooted in recent times as a possible successor to Mr Sharman. However, such speculation dissipated when it emerged that Mr FitzPatrick was being lined up to become chairman of Smurfit Kappa in advance of its proposed flotation. It is unclear whether the Aer Lingus chairmanship would be of interest to Mr FitzPatrick, who has numerous demands on his time.

Smurfit Kappa's chief executive Gary McGann is also chairman of the Dublin Airport Authority.