Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

This question relates to the Government's shareholding in Aer Lingus and its strategic value. The Government retained a minority stake of 25.1% in Aer Lingus in the initial public offering of shares in the group in 2006 primarily to protect what were perceived to be the State's strategic aviation interests at that time. However, the importance of the Government's minority stake, particularly in the context of the Heathrow slots, has changed over time. Developments such as the dissolution of the employee share ownership trust, ESOT, have had an impact. Also, the Government shareholding is not sufficient on its own to block the sale or lease of Heathrow slots by Aer Lingus. In terms of connectivity, while Heathrow remains very important for Ireland, there are now a wider range of connectivity options available through other hubs, including Schiphol, Frankfurt, Paris, Dubai and Abu Dhabi.

However, there are still strategic issues to be considered in the context of Aer Lingus and the services it provides. For example, following detailed consideration, the Government decided that it would not be prepared to support the most recent Ryanair offer for Aer Lingus on the basis that it would have a significant negative impact on competition, connectivity and employment in the Irish market. The offer is currently being examined by the European Commissioner under the EU merger control rules and, notwithstanding recent media reports, the Government awaits the Commission's formal decision which we expect in the coming weeks.

The Government has made it clear that it plans to sell its shareholding in Aer Lingus at the right time, for the right price and under the right conditions. This position remains with respect to the above matter and is unchanged, and it is subject to ongoing consideration within Government.

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