Mueller confident Government will not sell 25% stake in Aer Lingus

AER Lingus chief executive Christoph Mueller does not expect the Government to dispose of its 25% stake in the airline to meet budget targets.

Mr Mueller said the airline is not a takeover target because of the airline’s “solid finances”.

Speaking to German newspaper Boersen-Zeitung, Mr Mueller said a sale of the Government’s stake is unlikely to happen because the carrier isn’t on an International Monetary Fund list of the Government’s potential disposals. The newspaper said the state still plans to withdraw its investment eventually.

Aer Lingus is looking to secure a marketing alliance involving the sharing of route codes in the Asia-Pacific region to tap into faster growth outside Europe, Mr Mueller said.

“In the United States the shake-out is more or less complete in my view... Latin America and Asia are clearly more exciting,” Mr Mueller said.

Aer Lingus already has a code-share agreement, where airlines link up their flights to extend their networks, with United, British Airways and KLM.

Mr Mueller said Aer Lingus was well protected against oil price swings this year as it hedges its exposure two years in advance. He also said there was more potential to save costs, for instance in oil purchasing and IT processes.

After reporting losses in 2008 and 2009, Aer Lingus has cut unprofitable US routes, reduced staff and fuel costs and has said it expects to at least break even on an operating level before exceptional items in 2010.

Mr Mueller said he expected a very slow recovery of air traffic, which slumped amid the global economic crisis, but said there may be some growth in Ireland in 2012.

Mr Mueller, who was appointed CEO of Aer Lingus in September 2009, is speaking at the Dublin Chamber of Commerce’s AGM dinner tonight at The Four Seasons Hotel, starting at 6.15pm.

It is a week for Chamber events, with Cork Chamber getting ready to hold its annual dinner tomorrow night at Cork City Hall.