Government must keep Aer Lingus stake

THE news that the Government is actively considering selling its stake in Aer Lingus is a cause for grave concern.

A quick fire sale of the Government stake in Aer Lingus is ill-conceived, lacks foresight and smacks of selling the family silver to pay the gas bill.

To state the obvious, Ireland is an island and therefore needs an excellent air infrastructure to provide access to external markets. Inbound tourism and exports have been cited as key elements in our economic recovery. Aer Lingus is profitable and generating cash despite economic difficulties with €919m in the bank. It also has an attractive and much-coveted slot portfolio at both Dublin and Heathrow.

If Aer Lingus were to fall into the control of a larger airline entity or investment consortium, who is to say that they would not sell it off? This could severely impact on access to and from Ireland. Foreign companies, whose sole loyalty is to their shareholders, have demonstrated that they have no allegiance to Ireland.

Analysts believe that the sale of the Government’s 29% stake would net them €90 million — a paltry amount in the general scheme of things given the reason for initiating such a sale in the first instance. It also seriously undervalues the stake, given Aer Lingus’s return to profitability and its asset-rich status.

The Government needs to retain its stake so as to ensure a proper air infrastructure for our island and also to prevent future generations from being cheated out of their inheritance.

Killian Brennan

Malahide Road

Dublin 17