Taoiseach attacks ex-airline directors

Dail Report: Taoiseach Bertie Ahern launched a strongly-worded attack on three former Aer Lingus directors in a Dáil row over the part-privatisation of the airline.

He claimed the directors wanted to "steal the assets" and "shaft" staff interests. Mr Ahern said he was "glad those individuals went on to prove their worth in the financial marketplace but at least they did not do it by taking the assets away from Aer Lingus".

The Taoiseach did not name the directors but was obviously referring to the former chief executive, Willie Walsh, who is now the CEO of British Airways, and to two other former directors, Séamus Kearney and Brian Dunne. In 2004 the three men had proposed a management buyout of the airline, but it was ruled out by the Government.

Mr Ahern's sharp remarks were issued in response to Labour leader Pat Rabbitte, who asked why the Taoiseach "personally routed the chief executive who proposed it at a time when it would have at least have brought in a few shillings for the Exchequer. Those market conditions no longer obtain."

Mr Ahern said he was "surprised that Deputy Rabbitte is taking up a position that was opposed by every trade unionist in Aer Lingus, where management wanted to steal the assets for themselves through a management buy-out, shafting staff interests. Deputy Rabbitte is now defending that position."

The exchanges arose when Mr Rabbitte referred to reports that the Government had missed a June deadline for the proposed initial public offering (IPO) to sell 74.9 per cent of the national airline. Mr Ahern said that the part-privatisation of Aer Lingus could still take place this year. It would be implemented "as soon as possible taking into account stock exchange rules and market conditions". He insisted that the Government had never mentioned June as a date for the IPO but said "it is still the view it can happen this year".

The Labour leader asked if the sale would go ahead in the autumn but he warned that the experience of Air Berlin could not be ignored. That airline "went to the stock market last week but found it had to halve the expected share price with the subsequent reduction in income. In these circumstances is it the Government's intention to proceed with the sale?" He asked would the national airline "be sold for a mess of potage as little as €200 million or €300 million?"

The Taoiseach said the transaction "will be implemented as soon as possible. It will take account of stock market conditions and the regulatory requirements that need to be fulfilled before a flotation can take place. The exact arrangements in this regard will be decided by the Ministers for Transport and Finance, based on the professional advice available to them."

Mr Ahern said the "prospect of oil prices reaching record highs poses a risk for the entire economy. It is true that airlines are particularly sensitive to external shocks and global downturns." It would be "totally irresponsible to go to the market without the advice of our financial experts in this area and we will do that when the time is right, based on the advice we get," Mr Ahern said.

Mr Rabbitte believed the Taoiseach was "effectively telling the House that the prospect of an IPO in September or October are minimal and if it does happen it will be to give away the national airline for a song, leaving this trading island nation with no control over air links".