Aer Lingus chiefs launch bid to buy out airline

SENIOR management at Aer Lingus last night told the Government they want to make a bid to buy the State airline, which is worth up to €800 million.

Chief executive Willie Walsh, 42, chief financial officer Brian Dunne, 37, and chief operations officer Seamus Kearney, 39, have requested consent from the Department of Transport to allow them to develop "an investment proposal for the company".

It is understood the proposal will be a management buyout if the Government gives its approval. Transport Minister Séamus Brennan confirmed he had received the request and said he would respond after seeking expert advice. He said the Government would be briefed and guidance on the matter would be issued to the Aer Lingus board.

The minister said no decision was made to sell Aer Lingus.

"The request is a matter for the Government to consider in the context of its ongoing deliberations on the future of the airline, the need for openness and transparency, the avoidance of conflicts of interest and consultation with stakeholders," said Mr Brennan.

Legal advice is also being sought by the company secretary on what legal safeguards and procedures need to be put in place to protect the interests of Aer Lingus.

It is not known if the trio, will bring in the employees share ownership trust (ESOT), who own 15% of the company but the Government will want to have staff approval if they are going to sell the company. The staff's stake could be worth up to €120m.

Any sale will have to be approved by the Oireachtas under the terms of the Aer Lingus Act passed earlier this year.

Last night an aviation stockbroking analyst, who asked not to be named, said the proposal was telling the Government to act onthe privatisation of the company or the three executives would leave their posts.

"Senior management at Aer Lingus are highly regarded in the industry the analyst said.

"If the Government says no to this request then the executives will almost certainly move on. They will be head-hunted at a rate of knots."

The Aer Lingus management team has already lined up finance for a buyout.

The three executives issued their statement through Q4 Public Relations and not through the Aer Lingus press office.