Timmy Dooley (Clare, Fianna Fail)
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Question 208: To ask the Minister for Transport, Tourism and Sport the extent to which European Union restrictions on foreign ownership of airlines will restrict the sale of the Government's stake in Aer Lingus; and if he will make a statement on the matter. [31143/12]

Leo Varadkar (Dublin West, Fine Gael)
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The relevant EU Regulation does not, in itself, place any specific restrictions on the Government selling its stake in Aer Lingus. However, it may impose restrictions on prospective buyers.

Regulation (EC) No. 1008 of 2008 sets out the rules for the licensing of Community air carriers. This Regulation states that in order to be granted an operating licence, certain conditions must be met, among which is the stipulation that Member States and/or nationals of Member States must own more than 50% of the undertaking and effectively control it, whether directly or indirectly through one or more intermediate undertakings.

This restriction may be relaxed in the case of certain non-EU countries where there is an aviation agreement with the EU and its Member States which provides for foreign ownership and control of airlines.