Bernard Durkan (Kildare North, Fine Gael)
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Question 264: To ask the Minister for Transport his preferred options or expectations in relation to ownership of Aer Lingus in the future; and if he will make a statement on the matter. [6897/07]

Martin Cullen (Waterford, Fianna Fail)
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It is my belief and that of the Government 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.

I am also firmly of the view that Ireland's economic interests are best served by having as many airlines as possible competing vigorously and seeking to exploit all possible opportunities for new services. I want to see a strong Aer Lingus and a strong Ryanair competing with each other. The Government has concerns about the potential impact of the proposed takeover on competition in air services to/from Ireland.

The European Commission recently announced that it has decided to initiate a Phase 2 investigation of the attempted takeover of Aer Lingus as notified by Ryanair pursuant to EC Merger Regulation. In effect, the decision by the EU Commission means that the Ryanair Offer to Aer Lingus Shareholders has now lapsed.

The decision by the Commission is consistent with my view that the proposed merger would raise significant competition issues. My Department will continue to outline to the European Commission the Government's concerns during the Phase 2 investigation.