The Government had concluded that the best way of responding to the competitive challenges facing Aer Lingus and of meeting the airline's capital requirements in the medium to long term was to privatise the company, the Minister for Public Enterprise, Mrs O'Rourke, told the House. Initiating the second stage debate on the Aer Lingus Bill, she said the Government's strategy for the airline was being undertaken in consultation with the Aer Lingus management and unions. "I have no doubt that this strategy will secure a strong and viable Aer Lingus going forward and continuing to serve Ireland's main markets in the UK, Europe and the United States".
The main purpose of the Bill was to facilitate the sale of shares in Aer Lingus at a time to be determined, said the Minister. Salomon Smith Barney and AIB Capital Markets had been engaged as the joint global co-ordinators and underwriters for the transaction. She was hopeful it might be possible to complete the offering in the latter half of this year or early in 2001, depending on market conditions and the satisfactory finalisation of all preparatory stages for the IPO.
She said that notwithstanding the airline's positive performance and the forecast for continued economic growth in Ireland, the Government wished to ensure that Aer Lingus was fully and clearly positioned to compete successfully in the changing global air transport market and would have the ability to respond effectively to the cyclical nature of the industry.
"The Government is satisfied that there are no longer compelling economic reasons underlying State ownership of Aer Lingus. The availability of private-sector capital is now far more widespread than when the airline was originally set up and there is no shortage of operators willing to take on commercially viable routes."