The Government has confirmed that AIB Capital Markets and Salomon Smith Barney have been selected as financial advisers and joint global co-ordinators for the flotation of Aer Lingus, which is expected to raise in excess of £500 million (€635 million).

Aer Lingus will also be holding a combined offer, whereby it hopes to raise an additional £150-£200 million. Its own adviser, IBI Corporate Finance, will also be working on the offering.