Pearse Doherty (Donegal South West, Sinn Fein)
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Question 11: To ask the Minister for Transport; Tourism and Sport if he will provide an update in his plans to sell of the State share of Aer Lingus and the conditions he requires to proceed with any sale. [23039/12]

Clare Daly (Dublin North, Socialist Party)
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Question 22: To ask the Minister for Transport; Tourism and Sport the progress made in the selling off of the remaining State share in Aer Lingus in the context of a share purchase (details supplied) as reported recently in the media; and if he will make a statement on the matter. [22999/12]

Leo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 11 and 22 together.

The Deputies' questions relate to the State's shareholding in Aer Lingus. Two working groups were established by the Government in 2011 on State asset disposals, one to consider the best approach in progressing the proposed part-sale of ESB, and the other to undertake a similar analysis of a number of other State assets identified by Government as potential candidates for disposal. The State's remaining 25% shareholding in Aer Lingus was considered as part of this group of assets. Both of these working groups completed their work in 2011 and reported to Ministers in December 2011. NewERA was centrally involved in this process together with all relevant Departments including mine. It was on the basis of the analysis undertaken by these two working groups that the Government agreed to the list of asset disposals announced on 22 February.

In relation to Aer Lingus, the Government considers that the State's remaining shareholding in the company is no longer a strategic asset as it does not enable the Government to determine Aer Lingus policy on issues such as the use of the airline's landing slots at Heathrow Airport. Accordingly, the Government has decided that the State's remaining shareholding in Aer Lingus will be sold at an appropriate time, but only when market conditions are favourable and at an acceptable price to be agreed by Government.

My Department is working in conjunction with the Department of Public Expenditure and Reform, and NewERA, to examine the potential options for the disposal of the State's stake and the issues that may need to be addressed in the context of the disposal of the stake.

Dessie Ellis (Dublin North West, Sinn Fein)
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It is disappointing that we are even considering the sale of Aer Lingus, which has been a flagship for this country for so many years. If we were to sell it at today's price of 97 cent per share, it would bring in approximately €160 million. In terms of a cost-benefit analysis, I do not know whether we would get value from selling it off given the effect on tourism, the jobs we have lost and the accessibility of Aer Lingus for people here, on the Continent and elsewhere .

We know the Minister has been in talks with other companies. At one stage, Ryanair said it was interested and Etihad Airways has also shown some interest. Is there any truth in the rumours that some of these companies are pitching for Aer Lingus? It has been mentioned in the Sunday Business Post that approaches were made. The Minister may be keeping tight-lipped about the matter but I would be interested to know. I do not believe it is in our interest to sell Aer Lingus.

Leo Varadkar (Dublin West, Fine Gael)
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Of course there is interest in the stake. The Deputy will be aware that Etihad has acquired 3% of Aer Lingus on the open market.

Dessie Ellis (Dublin North West, Sinn Fein)
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Yes.

Leo Varadkar (Dublin West, Fine Gael)
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Those kind of discussions are commercially sensitive and do not necessarily involve me directly. It would not be appropriate for me to meet with individual potential buyers. It is being done through a group made up of the Department of Public Expenditure and Reform, and my Department, and is led by NewERA.

Timmy Dooley (Clare, Fianna Fail)
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I appreciate Deputy Ellis letting me in on this particular question. There were some media reports about a board meeting of Aer Lingus, which was due to take place last Friday. Part of the leaks in advance seemed to suggest that there was an item on the agenda concerning the consolidation of Aer Lingus maintenance activities on the grounds of the campus at Dublin Airport. Can the Minister give us any insight into that? In the context of today's announcement on Shannon, the Minister has set the future for the region based on activities which are ancillary to passenger activity, as to providing future employment potential at the airport. It is my view that if Aer Lingus, as the national carrier - or, at least, a carrier with a significant national shareholding - was to move its maintenance from Shannon to Dublin it would be somewhat belittling for the Government's policy to set Shannon as a centre of excellence for ancillary aircraft maintenance and general activity in that regard.

Leo Varadkar (Dublin West, Fine Gael)
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The Deputy's question would be better asked of Aer Lingus. It is a plc which the Government does not own or control. I cannot answer questions on behalf of Aer Lingus, or on behalf of Transaero for that matter. When I read reports about this in the media, which is where I heard about it, I contacted the chairman of Aer Lingus and the Government representatives on the Aer Lingus board to express my concerns. I impressed on them the Government's view that it is important to maintain employment in the mid-west.

Michael Kitt (Galway East, Fianna Fail)
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The next Question No. 12 is in the name of Deputy Sandra McLellan

Dessie Ellis (Dublin North West, Sinn Fein)
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We have done that.

Leo Varadkar (Dublin West, Fine Gael)
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Have we done this already?

Dessie Ellis (Dublin North West, Sinn Fein)
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We have.

Michael Kitt (Galway East, Fianna Fail)
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If Deputies are happy enough with that, we will go on to the next item. Question No. 13 is in the name of Deputy David Stanton.