Shareholders could block deal to end Aer Lingus dispute, Varadkar warns

Minister for Transport Leo Varadkar has today warned that any deal to end the pensions dispute at Aer Lingus and the DAA could be blocked by shareholders.

Minister Varadkar says both sides in the dispute need to prepare for the prospect that shareholders will block any solution.

He said any deal to end the current standoff will probably see both companies putting more money into the fund, which has a deficit of over €700m.

However, Minister Varadkar says the other shareholders in Aer Lingus could stand in the way of that deal.

"Bear in mind, not only a few weeks ago there was a vote on remuneration of the CEO, and the Government was on the losing side of that vote," he said.

"So I do think that's something that needs to be borne in mind by members of the scheme - that any money injected into the scheme by Aer Lingus will need the support of the institutional shareholders in Aer Lingus as well."