Aer Lingus set to seek outsider as its new CEO

The board of Aer Lingus is expected to look outside the company to replace its chief executive, Mr Garry Cullen, who resigned last week.

It is also thought unlikely that the airline's non-executive chairman, Mr Berie Cahill, will seek to lead the company into the flotation process by taking the position of executive chairman.

While Mr Cahill has held this position twice - after the departure of two previous chief executives - sources point to the immediate appointment of Mr Cullen's deputy, Mr Larry Stanley, as interim CEO when he resigned last Wednesday as an indication that Mr Cahill would not be seeking to take the role again.

Asked through a spokesman whether he had any interest in the position, Mr Cahill said the appointment of a replacement for Mr Cullen would be made "in ample time" for the flotation.

The board is expected to move swiftly to appoint a new chief executive. While Mr Cullen's appointment in 1998 came some five months after the resignation of his predecessor, Mr Gary McGann, Government sources say the position could be filled within two months.

Aer Lingus is expected to report its fifth successive year of earnings growth next April and Mr Cahill has said the company should be floated "sooner rather than later", perhaps as early as next summer.

But Government sources say the flotation is unlikely to take place before autumn, as time-consuming issues such as the development of an Employee Share Option Plan (ESOP) have yet to be resolved.

While industry observers say it would be difficult for the company to sell its story to Irish and international investors in the absence of a chief executive, airline sources stress that Aer Lingus is working towards flotation on a "business as usual" basis.

Mr Stanley held a meeting with the airline's management yesterday morning and signalled that the airline was still proceeding with its plan to float.

The Government is expected to appoint corporate advisers to the flotation next week. While no official reason has been given for the delay in the appointment, expected during this week, one suggestion is that contractual details with an international firm of advisers are still being finalised.

Both Salomon Smith Barney and Morgan Stanley Dean Witter are regarded as front runners for the contract.

On the domestic side, industry figures say AIB Capital Markets is likely to be chosen. However, other investment houses such as NCB and ABN Amro have also submitted bids for the contract.

It is not known whether Mr Stanley will apply for the position of CEO. Highly regarded within the airline, he did not apply for the post when it last became vacant in 1998.

One well-placed airline source suggested the airline's finance director, Mr John O'Donovan, as another possible candidate, a candidate who would be highly regarded in the investment community.