Jim O'Keeffe
Question:105 Mr. J. O'Keeffe asked the Minister for Transport the approximate net worth of Aer Lingus; and if and when it is intended to offer the company for sale. [16673/03]
Written Answers. - Semi-State Bodies.
Willie Penrose
Question:109 Mr. Penrose asked the Minister for Transport the Government's proposals for the future of Aer Lingus, especially having regard to the strategic importance of the company for the tourism industry; the discussions he has had with the management or the trade unions regarding the future of the airline; if a decision has been made to sell off all or part of the company; and if he will make a statement on the matter. [16884/03]
I propose to take Questions Nos. 105 and 109 together.
The Deputies will be aware that on 15 April 2003 the Government approved the re-drafting of the Aer Lingus Bill 2000 to give effect to the employee share ownership plan – ESOP – agreed between Government and Aer Lingus unions and to provide the statutory framework to facilitate a process of private sector investment in the company.
The text of the revised Bill, the Aer Lingus Bill 2003, was approved by Government at its meeting yesterday, 17 June 2003, and will be published in the coming weeks.
On the actual external investment process, the Government agreed that the Minister for Finance and I should review the situation regarding the timing of such a process, taking account of market conditions and the company's funding requirements. It is clear that significant funding requirements will arise in order for Aer Lingus to rationalise the existing fleet and fund the aircraft necessary to expand its services.
Moreover, the company is currently assessing the additional potential opportunities for growth arising as a result of the further liberalisation on the transatlantic route under the new EU-US "open skies" mandate. The company position on fleet rationalisation and enlargement is expected to be finalised in September 2003 and this will be a key input to the ministerial review. Once that review is completed, I will revert to Government on the future in Aer Lingus. Issues such as the valuation of the company are not relevant at this stage and will only arise in the context of a private sector investment process.