AER LINGUS is considering offers for up to 11 aircraft in its fleet as it seeks to cut its cost base and bolster its cash balances.

In an interim management statement published yesterday, Aer Lingus revealed that it was considering the sale, or sale and leaseback, of a number of its aircraft, having initiated a tender process on October 7th.

However, it did not give any details of how many aircraft had been offered to the market.

The airline is considering offers on four A330s, three A321s and four A320s in its 44-strong fleet. They are all believed to be at least eight years old.

One source said the airline could raise a couple of hundred million euro from such a transaction but the final outcome will depend on how many aircraft are offloaded and whether they are sold straight or then leased back.

Aer Lingus negotiated the termination of an existing lease of an A330 aircraft in October and has agreed to end early an additional lease of an A330 in March 2010.

“A significant number of expressions of interest have been received . . . and the company will seek to pursue the disposal of some units in the fleet should there not be the demand or appropriate cost base to operate them,” Aer Lingus said yesterday.

Aer Lingus had net cash of €399 million at the end of September. This compared with €653.9 million a year earlier and largely reflected a €107 million charge for restructuring costs and the final payments for two new A330 aircraft.

Analysts have estimated that its cash balances could fall to below €300 million by the year end. So the sale of aircraft could provide a welcome injection of funds into the business, although probably not until the next year.

Aer Lingus reported continued weakness in trading in the third quarter, although the results were better than analysts had expected.

Total revenues fell by 9.7 per cent year on year between July and September. The number of passengers flown was down 7 per cent to 3.08 million.

This comprised a 10 per cent increase in short-haul services but a 13.2 per cent decline on routes to the US.

Average passenger revenues fell by 14.8 per cent year on year.

Yields continued to decline against a weak economic backdrop. Short-haul average fares fell by 12.3 per cent, which was partially offset by a rise of 8.5 per cent in ancillary revenues. Long-haul fares declined by 17 per cent.

“The business continues to experience challenging conditions,” Aer Lingus said. “While the fall in yields year on year continues, the pace of decline in average fares does not appear to be accelerating currently.”

Based on yesterday’s trading update, Davy pared back its forecast operating loss for Aer Lingus this year to €90 million from €112 million previously.

Aer Lingus did not comment on the progress of talks with its unions on its transformation plan, which is hoped to achieve cost savings of €97 million a year. Its share price closed up 9.6 per cent in Dublin yesterday at 61.4 cent.