Timmy Dooley (Clare, Fianna Fail)
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Question 209: To ask the Minister for Transport, Tourism and Sport if he has had any contact with the Department of Public Expenditure and Reform on Ryanair's bid for Aer Lingus; and if he will make a statement on the matter. [31144/12]

Timmy Dooley (Clare, Fianna Fail)
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Question 210: To ask the Minister for Transport, Tourism and Sport if he will consider competition and consumer issues when considering Ryanair's proposed bid for Aer Lingus; and if he will make a statement on the matter. [31145/12]

Leo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 209 and 210 together.

These questions concern the proposed offer by Ryanair for shares in Aer Lingus. As the State is a shareholder in Aer Lingus, I am constrained by the Irish Takeover Panel Rules and other requirements in what I can say in relation to the proposed takeover.

Deputies will be aware that Ryanair made a statement to the Irish Stock Exchange on Tuesday 19 June, that it intends to make an offer to Aer Lingus shareholders for the share capital of the company. Aer Lingus provided an initial response to the proposal on 20 June. Ryanair has up to 28 days from 19 June in which to make a formal offer to shareholders. Following the formal Ryanair offer, Aer Lingus will have 14 days in which to issue a defence to the Ryanair offer. It will also be necessary for Ryanair to submit its formal offer to the European Commission for consideration.

As I said above, Ryanair have indicated their intention to make an offer for Aer Lingus. When the position on the bid becomes clearer, I will discuss it with my Cabinet colleagues. In considering the Ryanair offer, the Government will have regard to following issues:

· what is best in passengers in terms of connectivity and air fares;

· what is best for the taxpayers in terms of the price we can get for the stake; and

· whether the competition authorities will allow Ryanair to gain control of the airline.