Time is on the Government's side in assessing the revised offer by International Airlines Group (IAG) – parent company of British Airways – for Aer Lingus. The Government has various roles to play and judgments to make before it decides whether to sell or retain its minority stake. As a 25 per cent shareholder it must consider the value of the offer made for its shares – worth some €335 million.
The most important issue for the Irish economy is the impact any takeover might have on connectivity in and out of the State. But the Government must also examine the potential employment consequences for Aer Lingus workers of a takeover, and seek assurances about the fate of the company’ s valuable take-off and landing slots at Heathrow airport and its wider plans for the development of services from Irish airports.
The Dublin-London route is one of the world's busiest. One fear is that IAG in acquiring Aer Lingus could use those slots to develop and expand the British airline's other, more profitable routes. This would mean reduced passenger access between Britain and Ireland. This would have worrying implications for Ireland's exports and for the growth and development of the tourism industry. No one knows better than Willie Walsh – a former Aer Lingus chief executive, and now IAG's chief executive – what the Irish airline has to offer. And he also knows the range of interests the Government must seek to protect before agreeing to sell its minority stake. Mr Walsh could help alleviate some concerns by outlining the guarantees he is willing to give should IAG's bid succeed.
The Government can only consider an offer from IAG, and fully explore the possibilities that it presents. Opposition politicians – in rejecting a bid before its detailed terms are fully known – have been premature in their response, and ill advised in their judgment. Any takeover of Aer Lingus would require clearance by European Union regulators – which could take several months – leaving the Government with ample time to weigh up all the options before reaching a decision in the national interest.