Noel Dempsey (Meath West, Fianna Fail)

Arrangements to safeguard Heathrow slots are built into the company's memorandum and articles of association of Aer Lingus. The effect of these arrangements, at present, is to provide for the possibility that any disposal of Heathrow slots by the company can be prevented by 30.2% of the votes cast at an extraordinary general meeting. Some 25.2% of the shares in the company are held by the Minister for Finance on behalf of the State and I understand that the ESOT holds 12.5% and Ryanair 29.3%. The remaining 33% of shares are held by various private bodies and financial institutions.

Also, under the memorandum and articles of association, the State is entitled to appoint three directors to the board of Aer Lingus. Currently, there is only one State-appointed director serving on the board and it is proposed that two further appointments be made in the near future. The State appointees will seek to ensure that all future decisions of the company that have implications for wider Government, aviation or regional development policies are considered and decided at board level. This will give the State appointees the opportunity to raise the public policy implications of each decision and to ensure the full commercial implications for the company are taken into account.

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