Group opposed to IAG's Aer Lingus bid to meet as Donohoe calls for 'improved' proposal
A meeting has been scheduled today for a group within the Labour party opposed to IAG's proposed Aer Lingus bid.
The Transport Minister Paschal Donohue yesterday effectively rejected the bid, while leaving the way open for a fresh offer with improved guarantees.
In a statement, he said: "The information and commitments that have been set out to date do not at present provide a basis on which the Government could give an irrevocable commitment to accept an offer to dispose of its shares, should one be made by IAG.
"In line with stated policy, the Government remains open to considering any improved proposal which IAG may bring to the steering group."
He said both IAG and Aer Lingus had made positive statements about overall job prospects at the airline, “including some encouraging information in respect of the number of new jobs for pilots, engineers and ground staff”.
However, he said IAG has also indicated there would be changes as a result of a takeover.
“Clarity on the overall employment prospects on the basis of the proposals received is still needed, with particular reference to the timeframe within which net additional employment would be created,” he said.
He added the Government needed firm commitments and details on matters such as the airline’s plans for expansion.
He also said IAG was proposing to offer legally binding, permanent commitments on the Heathrow slots and term-based commitments on routes.
“However, the commitment in relation to routes is for five years. The Government requires a longer period,” Mr Donohoe said.
According to the Irish Independent, a range of new sweeteners were put forward by IAG before the Government's announcement yesterday.
