Analysts: €1bn Aer Lingus valuation is exaggerated

Aviation analysts have suggested that the value of Aer Lingus could be a lot less than has been predicted.

The State airline is due to be floated on the stock exchange later this year.

According to the experts at international investment bank Dresdner Kleinwort, recent estimates valuing the airline at over €1bn are very inflated, and they have predicted that the carrier will sell for a lot less in the initial public offering (IPO) of shares in September.

The analysts suggested that a valuation in the region of €800m is more likely.