Seán Haughey (Dublin North Central, Fianna Fail)
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Question 501: To ask the Minister for Transport his views on the proposed hostile takeover of Aer Lingus by Ryanair; the action he is taking to prevent this; and if he will make a statement on the matter. [35672/06]

Martin Cullen (Waterford, Fianna Fail)
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I do not consider that the Government's strategic objectives would be best served by a takeover of Aer Lingus by Ryanair. It is my firm belief that Ireland's economic interests are best served by the provision, on a competitive basis, of regular, safe and cost-effective air services linking the country to key business and tourism markets around the world.

The Ryanair bid raises fundamental questions in relation to competition in aviation.

It is in the first instance a matter for the Board of Directors of Aer Lingus to evaluate the Ryanair offer and to express an opinion to its shareholders, including the State. The Board has already made clear its intention in this respect in its public rejection of the Ryanair offer. In any event my colleague, the Minister for Finance and I have already made clear that the State does not intend to sell its shares in Aer Lingus.

It is also the case that a proposal of this kind requires regulatory clearance from a competition perspective. Ryanair formally notified the European Commission of its intention to acquire a controlling interest in Aer Lingus on 30th October. My Department and the Department of Finance are working closely with advisors to prepare a case, detailing our concerns from an aviation policy and competition perspective, for submission to the European Commission. Officials of my Department met with the Competition Directorate of the European Commission on 20th October to set out the Government's concerns about the proposed takeover on competition grounds. Further contacts with the Commission will take place over the coming weeks.