Bernard Durkan (Kildare North, Fine Gael)
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Question 273: To ask the Minister for Transport, Tourism and Sport the extent to which he sees any future developments in the share holding at Aer LIngus to affect air transport or to be affected by EU or competition laws; and if he will make a statement on the matter. [17250/12]

Leo Varadkar (Dublin West, Fine Gael)
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In relation to Aer Lingus, the Government considers that the State's remaining shareholding is no longer a strategic asset as it does not enable the Government to determine Aer Lingus policy on issues such as the use of the airline's landing slots at Heathrow Airport. Accordingly, the Government has decided that the shareholding will be sold at an appropriate time, when market conditions are favourable and at an acceptable price that is agreed by Government. In conjunction with the Minister for Public Expenditure and Reform, I will consider all potential options for the proposed sale of the State's shareholding and any expressions of interest received.

With regard to competition law, the Deputy will be aware that a hostile takeover bid for Aer Lingus a few years ago was ruled out by the European Commission on competition grounds. The State had objected to the bid on the same basis. In terms of the proposed sale of the State's remaining shareholding, the future ownership arrangements would, of course, have to comply with relevant European requirements including the requirement that all EU licensed airlines are majority owned and effectively controlled by EU Member States and/or nationals of EU Member States.