Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 101: To ask the Minister for Transport his plans for the future role and development of Aer Lingus with particular reference to its future ownership, shareholding and share trading; and if he will make a statement on the matter. [41670/06]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context

Question 103: To ask the Minister for Transport his views on Ryanair's recent acquirement of a further 31 million Aer Lingus shares bringing its stake in the former national airline to over 25% and the consequences this will have for the future of aviation in this State. [41673/06]

Trevor Sargent (Dublin North, Green Party)
Link to this: Individually | In context

Question 128: To ask the Minister for Transport the implications of the 25% purchase of Aer Lingus with regard to future board decisions that can be taken by the company; and if his Department has considered raising the matter with the European or national competition authorities in view of the fact that such a minority stake may give Ryanair certain blocking rights on the activities of one of its main competitors. [41714/06]

Seymour Crawford (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context

Question 129: To ask the Minister for Transport if he will provide an update on the European Commission's investigation of the proposed take over of Aer Lingus by Ryanair; and if he will make a statement on the matter. [41737/06]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 278: To ask the Minister for Transport his vision for the future of Aer Lingus; and if he will make a statement on the matter. [42032/06]

Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 101, 103, 128, 129 and 278 together.

As a result of the successful flotation of the airline Aer Lingus now has the means to fulfil its potential and contribute in a positive way to the country's economic development. The company's capital requirements have been met though the IPO, which will enable it to implement its business plan.

The future development of the company is a matter for the Board and management of Aer Lingus as it is now a publicly listed company. Developments in relation to future ownership, shareholding and share trading are not within my control as Minister but subject to the various regulatory provisions relating to listed companies. The Minister for Finance and I said clearly in response to the present takeover bid that the State would not be selling its shares in Aer Lingus.

I have previously stated that the Government's view is that Ireland's strategic interest in aviation is best served by the provision of regular, safe, cost-effective and competitive air services linking the country to key business and tourism markets around the world and that the Government's strategic objectives would not be well served by a takeover of Aer Lingus by Ryanair.

The Commission is currently examining the proposed merger as notified by Ryanair pursuant to the EC Merger Regulation. A decision by the European Commission on whether to approve the merger, approve it subject to certain conditions or initiate a Phase 2 investigation must be made by 20th December.

The Government is opposed to the Ryanair bid, as it believes that a merger between the two companies would have a detrimental impact on competition in aviation services to and from Ireland. Officials from my Department have held a number of meetings with officials from the European Commission to outline the Governments position in relation to the bid and a number of legal and economic submissions have been made.

With a shareholding of over 25%, the support of Ryanair would be required for any proposed change to the company's Memorandum and Articles of Association and other changes requiring special resolutions. Ryanair will however be unable to prevent the adoption of ordinary resolutions or to have a nominee appointed to the Board unless it achieves the support of other shareholders. I do not consider that the Ryanair shareholding would have the effect of impeding the ability of Aer Lingus to develop its business and to compete with Ryanair.