Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Aer Lingus is a great company. It has been Ireland's flag carrier State airline and served the country well. As a private company in the past nine years, it has flourished and grown in the face of stiff competition. However, as a small carrier competing against larger companies in a changing European environment, it faces difficult challenges and risks. Its board and senior management recognise this and see IAG's proposal as a means to address it and enhance the company's opportunities to grow and develop. It can do so and as part of IAG. The Government believes a sale of the State's shareholding on the basis of the IAG proposal is the right decision in the interests of the country and the company.

I will conclude with five key reasons we should do so. First, it would strengthen the competitive position of Aer Lingus. It would reduce risk the company faces. It would provide the company with an opportunity within a larger group to grow and face challenges in a changing aviation environment. Second, it would give greater certainty around connectivity with Heathrow Airport. It would strengthen the guarantees we have around the disposal of slots and, furthermore, provide new guarantees around slot use for at least seven years. Third, it would promote Ireland's wider connectivity and bring growth to our airports. It is anticipated this move would bring benefits to the Aer Lingus long-haul and short-haul networks with IAG. There would be a focus on sustaining and growing routes from Dublin, Cork, Shannon and Knock airports. The fourth reason relates to the reason it would create employment. It is envisaged that by the end of 2016, 150 new net jobs would be created in Aer Lingus, rising to a total of 635 new net jobs by 2020. Fifth, it would protect the Aer Lingus brand and keeps its head office in Ireland.

Under the terms of the deal, Aer Lingus Group plc will not change its name and Aer Lingus will operate all scheduled international air transport services under the Aer Lingus name. Aer Lingus will maintain its head office in Ireland. We are seeking the approval of the House to proceed to do so on the basis of the principles I have laid before Members and which have been presented today. In the interests of the company and the country I call on Members to do so.

See this speech in context