Minister says Aer Lingus sale will proceed

The Government signalled yesterday that the privatisation of Aer Lingus is going ahead despite rising international oil prices.

Speaking at the Airline of the Year awards in place of Minister for Transport Martin Cullen, junior minister Pat 'the Cope' Gallagher, said the Government wanted the airline prepared for sale "as soon as possible".

"My department's advisers have been mandated to complete the process as soon as possible, taking account of stock exchange regulations and market conditions. "The investment will give Aer Lingus both the commercial flexibility and the financial muscle to compete and succeed in the global marketplace.

"Aer Lingus needs to have access to fund on the same basis as its competitors," he said.

The Department of Transport confirmed last night the sale process was continuing, even though jet fuel prices have escalated over recent days.

Speaking at the same event, a former Aer Lingus board member Dan Loughrey said he was concerned the carrier would be handicapped by conditions set down by Government.

"We are worried that the proposed ownership structure of Aer Lingus post-privatisation could hamper its development as a fully commercial entity," said Mr Loughrey, who now works at Bank of Ireland, but is chairman of the Air Transport User's Council.

"It is not possible to have it both ways - to maintain the semblance of a national airline in the traditional sense while opening the business to the full rigours of the markets."

Mr Loughrey, who worked closely with previous Aer Lingus chief executives like Willie Walsh, said the Government was in danger of constraining the airline for the future. "I would caution against too many caveats applying to aspects of its future operations".

Ryanair was named airline of the year at the event with several airlines winning category awards. Aer Lingus took three category awards, including best transatlantic routes. Shannon Airport won the best Irish airport award while Amsterdam's Schiphol won best international airport award.