Aer Lingus cites ‘compelling logic’ of IAG deal

The Aer Lingus board and its chairman, Colm Barrington, believe that there is a "compelling commercial logic" for the carrier to become part of International Consolidated Airlines' Group (IAG), which is prepared to pay €1.36 billion for it.

In a statement on Friday, Mr Barrington says the strong view of the board is that the prospect of Aer Lingus becoming part of IAG has a “compelling commercial logic”.

He adds that the move would have significant benefits for the Republic and supports the Government’s policy of having two domestically-based airlines.

"Following a combination with IAG, Aer Lingus will have a markedly greater number of more attractive growth options that will significantly benefit the company, its employees, its customers, the tourism sector, Irish business and industry and the airports at which Aer Lingus operates, and Ireland, " he says.

The statement comes following a two-day campaign by IAG's Irish chief executive, Willie Walsh, to win the support of Government officials, the Minister for Transport, Paschal Donohoe and Oireachtas members for his company's bid for Aer Lingus.

The group, owner of British Airways, Iberia and low cost carrier Vueling, has been circling Aer Lingus since December and last month said that it was prepared to offer €2.55 a-share for the airline.

The Aer Lingus board has already backed IAG's proposed offer, which now hangs on the Government agreeing to sell the State's 25.1 per cent stake in the airline and Ryanair parting with its 29.8 per cent.

Its statement confirms that the board of the Irish airline met the group of officials and advisers appointed by the Government to review the IAG proposal on Wednesday and set out its views on the benefits of a deal. These include ehanching Ireland’s position as a natural hub for transatlantic travel, accelerating Aer Lingus’s long-haul growth plans, boosting employment and strengthening the State’s air links.