Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 252: To ask the Minister for Transport his policy on the disposal of its share in Aer Lingus; and if he will make a statement on the matter. [3191/09]

Noel Dempsey (Meath West, Fianna Fail)
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The Government's aviation strategy is to facilitate the development of as wide a range as possible of competitive, safe and reliable air services for the benefit of business and tourism. In this context, at the time of the Aer Lingus IPO, the State retained a 25% shareholding in Aer Lingus to protect our strategic interests in a number of ways. Firstly, having a shareholding at this level acts as a block against a hostile takeover. The value of the State's shareholding in this regard has already been demonstrated and has ensured that the aviation market in Ireland will continue to be served by at least two strong competing airlines thus ensuring consumer choice and competition.

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

The Government will continue to exercise its shareholder role in Aer Lingus with a view to protecting Ireland's strategic interests.