Finian McGrath (Dublin North Central, Independent)
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Question 553: To ask the Minister for Transport if he will support a matter (details supplied). [48076/08]

Terence Flanagan (Dublin North East, Fine Gael)
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Question 572: To ask the Minister for Transport his views on correspondence from a person (details supplied) in Dublin 13; and if he will make a statement on the matter. [1697/09]

Noel Dempsey (Meath West, Fianna Fail)
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I propose to take questions Nos. 553 and 572 together.

The Government has rejected Ryanair's Cash Offer of €1.40 per share for the State's 25.1% shareholding in Aer Lingus. Government took the view that the Ryanair Offer greatly undervalued Aer Lingus. Competition in the Irish airline sector was also a major consideration. The cornerstone of Irish aviation policy is, and has been for many years, to encourage competition. Because we live on an island Irish consumers depend very heavily on air transport. The virtual monopoly that would have resulted if the Offer had been accepted would not have been in the best interests of Irish consumers. The Offer by Ryanair did not include any remedies to address the negative impact the takeover would have had on competition.

Other considerations also taken into account in reaching the decision to reject the Offer were the impact of the takeover on airports policy and consequently on regional development policy. Government was also mindful of the importance of ensuring maximum connectivity for Irish air travellers and concluded that this was best ensured in a competitive market.