TDs bid to block Aer Lingus sell-off

Government TDs opposed to the sale of Aer Lingus are set to meet unions this week amid growing speculation that the Cabinet is to sign off on the drawn-out €1.3bn deal by the middle of April.

Labour TDs Joe Costello and Robert Dowds confirmed the group will hold an emergency meeting with a handful of other opponents to the agreement after further concessions were made by IAG chief executive Willie Walsh in an attempt to sway support.

Weekend reports suggested that the controversial deal to sell the prized State asset could be finalised at the first Cabinet meeting after Easter, after IAG said it may be willing to lengthen its guarantee over Aer Lingus’s valuable Heathrow slots.

While a five-year guarantee offer has been on the table for more than a month, a possible extension of the proposal to a seven or 10-year guarantee has now been put forward.

A spokesperson for Transport Minister Paschal Donohue said no timeline is in place for when any possible deal could be agreed.

However, Mr Costello and Mr Dowds said that, despite this reassurance, they will meet other Government backbenchers opposed to any sale when the Dáil returns this week.

The duo — who were among the eight Labour TDs behind an emergency motion opposing the sale at the party’s recent annual conference — said that while any progress on the length of the Heathrow slots guarantee should be welcomed, this is “not the only concern” surrounding the deal.

During Labour’s annual conference, Mr Costello, Mr Dowds, Dominic Hannigan, Seán Kenny, John Lyons, Eamon Maloney, Michael McNamara, and Brendan Ryan put forward an emergency motion seeking assurances from IAG on four key areas before any sale could be considered.

They included an “independent valuation” of Aer Lingus assets and a “firm commitment” preventing outsourcing of jobs, compulsory redundancies and cuts to contract conditions.

Mr Costello said any talks between the Government and IAG appear to have only focused on the Heathrow slots, and that it remains a case of “all or nothing”.

Any possible deal is also continuing to be opposed by Fianna Fáil, with the opposition party’s transport spokesman, Timmy Dooley, saying even if the guarantee is extended he does not believe it is enforceable.

The Clare TD said there has been a “level of media manipulation from management and IAG” to convince people of the need to sell a company that has “high capital and a growing market share”.