Mr. Stephen Kavanagh:

I will address Deputy Noel Harrington's questions. The vagaries of airline pricing would probably take more than two minutes to explain and I do not want to consume too much of the committee's time. I will, however, address Senator Terry Brennan's example.

We believe IAG would benefit. As a publicly listed company, it has to justify its investment to its shareholders and investors. On the basis of our analysis and advice, we believe the €2.55 offer fairly reflects the value it would be acquiring. The State will obtain its own independent advice on whether the offer represents good value in the light of the prospects of Aer Lingus and current trading conditions. I remind the committee that Aer Lingus has been the subject of three hostile takeovers. With a public listed company of its size, that is always going to be a fact of commercial life because there are rational reasons consolidation will continue to be a feature of the industry. We have mutually beneficial relationships with a number of partners. United Airlines gives us access to the domestic US system in return for access to Aer Lingus services across the Atlantic to feed its hub at Heathrow Airport. Through SkyTeam, we have a relationship with KLM that allows us to serve its hub at Amsterdam-Schipol Airport.