Aer Lingus board meets Brennan to discuss the future

The privatisation of Aer Lingus is likely to be discussed today when the airline's board meets the Minister for Transport, Mr Brennan.

The State airline expects a €40 million profit this year on sales of €1.2 billion in a sharp turnaround from its original projection of a €130 million loss made after the attacks on the US in September last year.

But while a Government decision sanctioning the sale of up to 85 per cent of the firm remains in place, it is thought that any discussion on whether to proceed with the process will not be made until the new year when the company's financial result for 2002 is confirmed.

Aer Lingus has a volatile trading record and difficult industrial relations.

With an EU stricture banning State aid to the firm it had been thought that the private sector was the only source of additional capital for the airline.

Mr Brennan has already met the Aer Lingus chief executive, Mr Willie Walsh, and its chairman, Mr Tom Mulcahy, in separate meetings. His discussion with the Aer Lingus board today will be his first with the firm's other directors. Spokespeople for the Minister and for the airline confirmed the meeting would take place.

Directors are likely to be asked what their views are of the company's current and projected performance and its preparedness for a possible sale.

The firm has said that privatisation was not occupying any management time as it attempted to turn the business around. A flotation plan was abandoned last year.