Leo Varadkar (Dublin West, Fine Gael)

The question refers to Aer Lingus and whether it is a strategic asset, as well as my views on the Heathrow Airport slots. Aer Lingus is a PLC, a public limited company, and the Government only holds a 25% equity stake in the company. Consequently, Aer Lingus as a company cannot be considered to be a State asset. The minority stake is, however, an asset but is not considered to be a strategic one. The Government does not control the company, nor does it appoint the chairman or a majority of the board members.

Historically, much connectivity was provided to Ireland via Heathrow airport because routes from Ireland to Heathrow were among the earliest to be developed. However, many other options are now available.

The importance of the Government's minority stake in Aer Lingus has also changed over time and market developments, including the dissolution of the employee share ownership trust, ESOT, have had an impact. The Government stake is not sufficient to block either the sale or lease of a Heathrow slot by Aer Lingus to another body.

The McCarthy report recommended that the Government dispose of its shareholding in Aer Lingus "as soon as is opportune". No decision has yet been taken by Government in this regard.

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