Mr. Evan Cullen:

Deputy Timmy Dooley has said the airline is profitable, does not require cash and is growing. However, he has omitted to mention that it already has substantial code share agreements with the Star, SkyTeam and oneworld alliances. If, as IAG proposed in one of the published documents, Aer Lingus were to become a member of the oneworld alliance, the membership would have to increase its return by 300% to replace the losses of the Star and SkyTeam alliances. In addition, it would require a different model because we would have to introduce a two-class service on short haul routes, similar to that of British Airways. There is only one sustainable argument for consolidation in the airline industry, which we must concede, namely, the fact that if one goes to Airbus or Boeing to buy 40 aeroplanes, if one is part of a conglomerate that is buying 400 aeroplanes, one gets a better deal. Aer Lingus has already addressed this fact through its substantial agreement with Etihad on the purchase and procurement of services and does not need IAG to help it with its capital expenditure, capex, because it already has a strategic partner. There is no other reason for an airline that is growing, profitable and on the trajectory Aer Lingus is on, with one of the youngest average fleet ages in Europe and the best fuel hedging contract in Europe, not just by a few dollars but by a country mile, for the IAG takeover. Aer Lingus does not need IAG; IAG needs Aer Lingus. When one takes a capital market value on Aer Lingus of €1.3 billion, there will be close to €500 million of free cash on the balance sheet. That would bring it down to €800 million. The net book value of the fleet is approximately €650 million, while the slots are valued at more than €400 million. IAG is already €200 million ahead on the share price offered.

Deputy Seán Kenny asked about connectivity. The Government cannot guarantee connectivity any more than Ryanair can tell IAG it will take the money for the shares but that it wants a guarantee that it will or will not operate on certain routes. The Government has no more leverage in that discussion than Ryanair or any other shareholder. It is nonsense for anybody to suggest the Government could put legally binding constraints on the new owners when it received the cheque for the shares. It could not happen.