An Australian jury has convicted a man of plotting to blow up an Etihad Airways airliner on a flight from Sydney to the United Arab Emirates with a bomb hidden in a meat grinder.

The national airline of the United Arab Emirates has said it is working with Australian police in their investigation into an attempted plane attack, suggesting it may have been a potential target.

Etihad Airways has signalled it would be willing to sell its stake in Aer Lingus if the Government backs the offer made by International Airlines Group (IAG) for the Dublin-based carrier.