Aer Lingus will not be allowed sell assets

AER Lingus will not be allowed by the Government to sell off key assets such as its landing and take-off slots at Heathrow airport after it is privatised.

Finance Minister Brian Cowen yesterday declared that the Government would prevent the company from selling off such assets and that the Government will remain long-term shareholders in the company.

The minister made the declaration during a question and answer session at the IMI National Management Conference at the Druids Glen Marriott Hotel, Co Wicklow, yesterday.

Asked would he, as the major shareholder post-floatation, do everything he could to stop Aer Lingus selling off its valuable slots at airports like Heathrow, the minister replied: "Absolutely. I don't see any reason why anyone would want to sell off those slots.

"We will make our position clear as a shareholder that we would not want to see such a matter unfold."

The minister stressed that it is the Government's intention to maintain a minimum shareholding of 21.5% in the company and they will adopt strategies to protect their shareholding in the event of Aer Lingus going back to the market for more cash in the future.

"We are in there for a longer haul that some people might think," Mr Cowen said.

The minister said that his main objective is to have a successful sale of the shares in the company and encouraged people to buy shares in the company.

The minister also said the Government may consider changing the regulatory environment in the telecommunications sector if the roll-out of broadband and other services continued to lag behind other countries.

Aer Lingus chief executive Dermot Mannion said yesterday: "Heathrow is a profitable operation for Aer Lingus. I expect that to continue. I expect Aer Lingus to have a presence at Heathrow into the future."

Mr Mannion also told the Oireachtas Joint Committee on Transport that the airline needed e400 million in new capital to fund borrowing of e1.6 billion for new aircraft.

"I believe, and I've had extensive meetings across the organisation, not just with unions, but with members of staff, and my view to them is that the best way of ensuring job security for all of us going forward is that Aer Lingus continues to build on its successful track record. In order to do that, we need new equity," he said.