Aer Lingus knew sale funds would not be reinvested

AER LINGUS has said it never expected the Government to reinvest the proceeds from the airline’s flotation in the company.

The Government will retain a minimum 25.1% share but sell the rest of its holding when the State-owned company is privatised in the autumn.

The Labour Party accused Transport Minister Martin Cullen of reneging on a promise after he told the Dáil on Thursday that the sale proceeds would go directly to the Exchequer rather than to Aer Lingus itself.