Written answers

Wednesday, 28 March 2012

Department of Transport, Tourism and Sport

State Assets

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 21: To ask the Minister for Transport, Tourism and Sport his preferred options for the future shareholding in Aer Lingus in the event of disposal of Government shares or any reconfiguration of shareholding; if he has received any report arising from any recent development in this sector; and if he will make a statement on the matter. [16901/12]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 272: To ask the Minister for Transport, Tourism and Sport his plans for the future of the States share holding in Aer Lingus; and if he will make a statement on the matter. [17249/12]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 21 and 272 together.

The Deputy's questions relate to the future of the Government's shareholding in Aer Lingus. In terms of State asset disposals, two Working Groups were established by the Government in 2011, one to consider the best approach in progressing the proposed part-sale of ESB and the other to undertake a similar analysis of a number of other State assets identified by Government as potential candidates for disposal. The State's remaining 25% shareholding in Aer Lingus was considered as part of this group of assets. Both of these Working Groups completed their work in 2011 and reported to Ministers in December 2011. NewERA was centrally involved in this process together with all relevant Departments including my Department. It was on the basis of the analysis undertaken by these two Working Groups that the Government agreed to the list of asset disposals announced on 22nd February.

In relation to Aer Lingus, the Government considers that the State's remaining shareholding in the company 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, an issue which in any case is no longer as significant as it once was given current capacity constraints at Heathrow and the growing popularity of other European airports such as Schipol and Frankfurt for connections to and from Ireland. Accordingly, the Government has decided that the State's remaining shareholding in Aer Lingus 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 and informed by the analysis carried out by the Working Group, I will consider all potential options for the proposed sale of the State's shareholding and all expressions of interest received.

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