Alan Kelly (Tipperary North, Labour) | Oireachtas source

The question relates to the Minister's intentions concerning the State's shareholding in Aer Lingus. This shareholding is one of the assets included in the State asset disposal programme and the Government has agreed that the shareholding is to be sold at an appropriate time but only when market conditions are favourable and at an acceptable price to be agreed by Government. A steering group has been established to progress the sale and to examine the potential disposal options and the issues that may need to be addressed in the context of the disposal. The steering group is chaired by my Department and comprises representatives from the Department of Finance, the Department of Public Expenditure and Reform and NewERA.

NewERA continues to provide advice and expertise to the steering group.  In view of the complexities involved in this particular disposal, NewERA has recently tendered for the appointment of an adviser to undertake additional analyses focused on evaluating the best options for a disposal in order to maximise the return for the Exchequer while protecting the interests of the consumer and preserving a competitive environment. As the Deputy will be aware, the European Commission is currently conducting a phase two investigation of Ryanair's offer for Aer Lingus under the EU merger control rules.  The Commission's decision is due in early February 2013 and my Department continues to closely monitor the case.  Irrespective of the outcome of that investigation, the Government has decided it is not in principle prepared to sell its shareholding in circumstances which could significantly impact on competition and connectivity in the Irish market. The Deputy is well aware of the Government's decision in the past few days not to sell this shareholding to Ryanair.

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