IAG boss Willie Walsh to face Oireachtas committee

International Consolidated Airlines Group (IAG) chief executive, Willie Walsh, faces a grilling from TDs and Senators on his company's €1.36 billion bid for Aer Lingus

Chairman of the Oireachtas Joint Committee on Transport and Communications, John O'Mahony, confirmed that Mr Walsh will be appearing before it on Thursday.

IAG is proposing to pay €2.55 a-share for Aer Lingus, but the approach has sparked a hostile reaction from politicians opposed to the sale of the State's 25 per cent stake in the airline.

Volcal opponents of a deal include transport committee members, deputies Timmy Dooley and Dessie Ellis.

News that the IAG chief executive intends appearing before the committee follows speculation that the Government is unlikely to agree to sell the State’s shares.

Aer Lingus’s take-off and landing rights the London hub, worth up to €1.2 billion on the basis of a recent deal between two international airlines, are likely to be a key issue at the meeting.

They are seen as critical to the Republic’s access to key investement and tourism markets. Opponents of a sale argue that they could be diverted from Irish routes should be airline be sold.

IAG has said that Aer Lingus will keep ownership of the slots and is offering legally-binding guarantees regarding that and covering their use on Irish routes.

Mr Walsh is also expected to set out the group's plans for Aer Lingus, which are likely to include growing its long-haul business through tie-ins with other IAG carriers, British Airways and Iberia, and American Airlines.