Bernard Durkan (Kildare North, Fine Gael)
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Question 114: To ask the Minister for Transport the policy influence retained by his Department in Aer Lingus through the 25% shareholding in the company; and if he will make a statement on the matter. [33157/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 130: To ask the Minister for Transport the extent to which he anticipates Aer Lingus to operate in accordance with the Government's policy; if Government policy has yet to be determined in this regard; and if he will make a statement on the matter. [33178/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 131: To ask the Minister for Transport if he anticipates further executive decisions affecting policies to be pursued by Aer Lingus which might not be in accordance with the Government policy; and if he will make a statement on the matter. [33179/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 132: To ask the Minister for Transport if he will exercise an organisational or management function in Aer Lingus in the future; and if he will make a statement on the matter. [33180/07]

Noel Dempsey (Meath West, Fianna Fail)
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I propose to take Questions Nos. 114 and 130 to 132, inclusive, together.

The Government's aviation strategy is to develop as wide a range as possible of competitive, safe and reliable air services for the benefit of business and tourism. In this context the State's shareholding of 25.4% is important for two key reasons. Firstly, it acts as a block against a hostile takeover of Aer Lingus and ensures that the aviation market in Ireland will continue to be served by at least two strong competing airlines. This is good for consumer choice and for lower air fares.

Secondly, the shareholding also ensures that the Memorandum and Articles of Association of the Company cannot be changed without the approval of the State. In turn, this means that the safeguard measures relating to a disposal of Heathrow slots cannot be changed by other shareholders. Also, the measures whereby the State can appoint three directors cannot be changed by other shareholders.

Currently there is one State appointed director serving on the board and it is now proposed that two further appointments will be made in the near future. The State appointees will seek to ensure that all future decisions of the company that have implications for wider Government, aviation or regional development policies are considered and decided at board level. This will give the State appointees the opportunity to raise the public policy implications of each decision and to ensure that the full commercial implications for the company are taken into account. The State appointees to the board do not have a veto on board decisions. It is not possible for the State to avail of its shareholding to seek to impose non-commercial obligations on the Company. I do not have any role in relation to organizational or management functions in Aer Lingus.