Tom Enright
Question:14 Mr. Enright asked the Minister for Public Enterprise the plans she has to privatise Aer Lingus; and if she will make a statement on the matter. [22466/00]
Written Answers. - Aer Lingus Flotation.
Seán Ryan
Question:36 Mr. S. Ryan asked the Minister for Public Enterprise if she remains committed to the flotation of Aer Lingus; and if she will make a statement on the matter. [22672/00]
Bernard J. Durkan
Question:46 Mr. Durkan asked the Minister for Public Enterprise her plans for the future of Aer Lingus and air transport generally; and if she will make a statement on the matter. [22707/00]
I propose to take Questions Nos. 14, 36 and 46 together.
The Government authorised me on 14 December 1999 to initiate a process leading to an initial public offering of shares in Aer Lingus Group plc and also authorised me to arrange for exploratory discussions with the Aer Lingus unions on increasing the current level of employee share ownership, not to exceed 14.9%.
Since the Government's decision, the Minister for Finance and I have engaged Schroders Salomon Smith Barney and AIB Capital Markets as the joint global co-ordinators for the transaction. Other advisors necessary to facilitate the implementation of the IPO have also been engaged. The Aer Lingus Bill, 2000, to provide the legislative framework to enable the IPO to proceed has been published and has passed Seanad Éireann. The Bill will be considered by Dáil Éireann in due course.
Significant progress has been made on the terms of an increased shareholding for Aer Lingus employees in the context of the IPO. However, some issues remain outstanding which will not be resolved until the current industrial relations difficulties in Aer Lingus have been settled. Indeed, as I indicated to the House earlier this week, it is clear that further progress in relation to the IPO generally cannot take place until those difficulties have been resolved.
I believe that they can and should be resolved speedily, with the assistance of the Labour Relations Commission and the Labour Court. On that basis, I expect that the IPO can take place next spring, subject to satisfactory finalisation of all preparatory work for the IPO and market conditions at the time.
In so far as the Government's policy for air transport generally is concerned, this policy is anchored on three central tenets. These are: the maintenance of the highest safety standards by Irish airlines and airports as overseen by the Irish Aviation Authority; the facilitation and encouragement of as wide a range as possible of reliable, regular and competitive commercial air services for Irish tourism, trade and industry; and ensuring that Irish airports are cost effective and have sufficient high quality infrastructure to meet the current and future needs of the Irish economy.