5th Mar 2015 12:14
LONDON (Alliance News) - Ireland's Transport minister Paschal Donoghue Thursday said that the government's engagement with International Consolidated Airlines Group PLC has been positive and the airline's bid to buy Aer Lingus PLC appears to be "friendly", but it wants the airline group to expand on what it will do to expand employment and protect the Irish flag carrier's identity and routes.
Concerns about jobs and connectivity remain, and IAG still needs to detail and expand its pledges on guaranteeing employment growth and protecting Aer Lingus routes and identity, Donoghue told Ireland's Newstalk radio.
More talks between the parties are due to take place.
Donoghue's interview supported earlier comments made by Ireland's Deputy Prime Minister Joan Burton on the same radio station.
"My understanding is that the parties who are in discussion and (from) the group which is advising the (transport) minister, that he is anticipating that there will be further offers forthcoming from IAG," Burton, who is the leader of the junior coalition Labour Party, told Newstalk.
IAG, the owner of British Airways and Spanish airlines Iberia and Vueling, made a EUR1.36 billion bid for Aer Lingus in January, but is now trying to get the backing of the Irish government for the deal. It has already pledged to protect the Irish flag carrier's identity and key routes, particularly those between Ireland and Heathrow, for five years, although Donoghue said this wasn't long enough.
Aer Lingus shares were up 5.3% at EUR2.33 in London Thursday morning, while IAG shares were down 1.1% at 563.10 pence.
By Steve McGrath; [email protected]; @stevemcgrath1
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