Bernard Allen (Cork North Central, Fine Gael)
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Question 163: To ask the Minister for Transport if the partial sale of Aer Lingus will be completed during 2006; the progress made to achieve such a target; and if he will make a statement on the matter. [3334/06]

Ruairi Quinn (Dublin South East, Labour)
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Question 195: To ask the Minister for Transport his plans in respect of the sale of the State share in Aer Lingus. [3139/06]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 163 and 195 together.

As the Deputies will be aware, in its decision of 18 May the Government agreed to the State disposing of a majority shareholding in Aer Lingus and retaining a stake of at least 25% to protect strategic interests provided that both the Minister for Finance and I are satisfied that this level of disposal is warranted on foot of the analysis prepared by the Departments' advisers for the transaction.

Following a competitive tender process, UBS and AIB Capital Markets were appointed to provide financial advice and assistance to both myself and the Minister for Finance in relation to an Aer Lingus sale-investment transaction. William Fry and Freshfields Bruckhaus Deringer were appointed as legal advisers for the assignment.

The first phase of the advisers' work was to recommend the most appropriate transaction mechanism and advise on the size and timing of a transaction. The advisers commenced their work in September and they submitted their report to both myself and the Minister for Finance in December 2005.

Late last year, Aer Lingus appointed financial advisers to advise the company on the investment process. The Aer Lingus trade unions and the ESOT have also appointed their own advisers and a number of meetings have taken place between their advisers and the advisers to the Ministers.

The Minister for Finance and myself are currently considering the report prepared by our advisers. Our Departments have also engaged with the company with a view to finalising the terms on which a transaction can be initiated as soon as possible. The Aer Lingus ESOT and trade unions will be fully consulted on the proposed approach.