Dáil Éireann díospóireacht -
Tuesday, 26 Jun 2001

Vol. 539 No. 1

Written Answers. - Air Services.

Nora Owen

Ceist:

114 Mrs. Owen asked the Minister for Public Enterprise the proposals she has for the privatisation of Aer Lingus; the discussions which have taken place with the trade unions representing staff or discussed by the board; the outcome of those discussions; and if she will make a statement on the matter. [18894/01]

Minister for Public Enterprise (Mrs. O'Rourke)

A Government decision of 14 December 1999 authorised me to initiate a process leading to an initial public offering of shares in Aer Lingus. Following that decision, the necessary advisors to facilitate the implementation of the transaction were engaged. The Aer Lingus Bill, 2000, to provide the legislative framework for the IPO was published and passed through the Seanad last summer. Discussions were also initiated last year with the Aer Lingus unions on an increased shareholding of 9.9% of the company for Aer Lingus employees in addition to the current employee shareholding of 5%. While significant progress was achieved, these discussions were suspended last summer as a consequence of industrial relations problems in the airline. These problems which continued into 2001 combined with prevailing market conditions have delayed the implementation of the IPO. A further influence on timing of the IPO is Aer Lingus performance in 2001.

Against the background of these factors and their potential impact on the timing of an IPO, I recently requested my advisers to look at alternative sale options for the airline, take soundings of interest from potential investors or buyers and report back to me within a few weeks. It is too early to speculate on the outcome of the advisers' work. If in my judgment and that of the Minister for Finance, Deputy McCreevy, alternative sale options are worth pursuing having regard to the report of the advisers and other relevant issues, a formal sale process will be implemented at the appropriate time which will be open and transparent. I have apprised the Aer Lingus unions of these developments in recent discussions and agreement was reached on the resumption of the interrupted discussions with all of the unions to which I referred earlier. The first of these meet ings took place with departmental officials on Thursday, 21 June 2001.