Cabinet to green-light Aer Lingus sell-off

THE Cabinet is set to finally give the go-ahead for the part-privatisation of Aer Lingus today, as unions threaten strike action to try and scupper the sell-off.

SIPTU president Jack O'Connor described plans to float 60% of the national carrier's stock as a "dreadful decision" the country would live to regret.

Union chiefs were in defiant mood as they left a two-hour meeting with Transport Minister Martin Cullen to discuss the sell-off last night.

SIPTU's national industrial secretary Michael Halpenny said he received no concrete assurances on job security, pensions or outsourcing from the minister.

He warned that union members would have no alternative but to protect themselves with industrial action if the guarantees they sought were not met.

Taoiseach Bertie Ahern was upbeat about the expected part-privatisation ahead of this morning's Cabinet meeting.

"This is all part of the development and frankly, I think it's a good thing and we just have to make sure that we have the necessary protections," he said.

"The State will stay in with its shareholding, but it's good that we can move it on. The fact of the matter is the losses, the lack of investment, the unemployment, that was all happening when it was in State hands. Now we are preparing for a different position where we are talking of having maybe 30 million passengers through Dublin Airport and, obviously, Aer Lingus having a large share of that."

Critics of the plans have pointed to the sale of Eircom seven years ago as a reason not to go ahead with the move. Investors saw the value of their shares drop by a third and the company has been attacked for not providing a big enough broadband network for the country's needs.

However, ministers insist a sell-off with the Government retaining 25% and workers another 15% of the airline is the only way to get the funding for new aircraft needed by Aer Lingus.

Tánaiste Mary Harney said: "The State should invest in schools, hospitals and garda stations, not airlines."

Labour transport spokeswoman Roisín Shortall insisted Aer Lingus could continue to grow in State ownership. She said that as the national carrier, it was vital to retain access to other parts of the world.

SIPTU members have already voted in favour of industrial action if the Government presses ahead with privatisation without meeting its demands.

The Taoiseach pledged the Government would seek certain protections for customers and staff of Aer Lingus as part of a privatisation package. Issues regarding pensions and staff conditions would have to be guaranteed, he said.