Róisín Shortall
Ceist:19 Ms Shortall asked the Minister for Public Enterprise the position in relation to the negotiations on a strategic alliance for Aer Lingus; and if she will make a statement on the matter. [21769/99]
Written Answers. - Airlines Strategic Alliance.
Seán Barrett
Ceist:20 Mr. Barrett asked the Minister for Public Enterprise the situation in relation to the participation of Aer Lingus in the Oneworld strategic alliance; if it is the Government's intention to proceed with the initial public offering in Aer Lingus; and the Government's objectives for any change of ownership. [20813/99]
I propose to take Questions Nos. 19 and 20 together.
As Deputies are aware, the Government mandated Aer Lingus to enter negotiations with American Airlines and British Airways with a view to concluding an operational strategic alliance as soon as possible subject to satisfactory due diligence, documentation and regulatory approvals and with a commitment that these airlines will sponsor Aer Lingus membership of the Oneworld alliance of airlines. I understand negotiations are progressing satisfactorily and that significant elements of the operational alliance have already been agreed by the airlines concerned.
When the contract negotiations with American Airlines and British Airways are concluded, they will then sponsor Aer Lingus for membership of the Oneworld alliance. Full membership of Oneworld for Aer Lingus is expected to take place during 2000.
With regard to a possible initial public offering for Aer Lingus, no decision has been made in the matter. However, the Government has mandated myself and the Minister for Finance to initiate a process with the board of Aer Lingus and appropriate social partners to address the funding requirements of Aer Lingus and possible sources of funding, including an IPO, and to submit proposals to Government following that process in due course. The process is now under way and I expect it will be completed as quickly as possible. It would be inappropriate for me to comment on what the outcome of that process might be prior to its completion.