Bertie Ahern (Dublin Central, Fianna Fail)

I referred to these issues in response to the social partnership questions earlier.

The Minister for Transport has been engaging in lengthy discussions with the trade unions and will continue to talk to them to address these concerns. Last May, we decided to allow the sale of a majority shareholding in Aer Lingus in order to receive an equity injection into the company while retaining a significant stake in it, to protect the State's key strategic interests. The Government authorised the Ministers of Transport and Finance to commence arrangements to facilitate the investment transaction, including the appointment of advisers to make recommendations on the nature, scale and timing of that transaction, which was phase one of the project, as well as the advice on the implementation of a selected transaction mechanism, which is phase two of the work. The advisers to the Ministers of Transport and Finance produced a report on the nature, scale and timing last December, and over the past four months the Ministers have considered all the recommendations made and engaged with the trade unions on the issue. The Government is going ahead with this.

This is good news for the airline, its staff and customers and for the broad economy. The transaction will give Aer Lingus access to the broadest range of funding available in the financial markets. It will also enhance the company's financial strength and give it the commercial flexibility necessary to compete and win in one of the world's most dynamic industries. It will allow Aer Lingus to implement its ambitious business plan and see the long-haul fleet doubling in the short term. The fleet will grow by more than 55% in the next five years, with clear positive implications for the numbers employed in the airline. It will lead to a significant increase in the airline's global reach and thus enhance international access to Ireland for inward investment. It will significantly broaden the level of choice for Irish customers and improve international linkages for domestic business, and enhance our competitiveness as a modern country.

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