The Aer Lingus board is expected to undergo a major reshuffle in the new year, with the majority of the 12 directors being replaced in a move which will pave the way for flotation. The changes could see the departure of several political appointees including two close associates of the Taoiseach. They are Mr Des Richardson, a Fianna Fail fundraiser, and Mr Chris Wall, a business consultant and former election agent for Mr Ahern.

When asked by The Irish Times, the Minister for Public Enterprise, Ms O'Rourke, said yesterday that she "anticipated some changes at board level". She said she would act on the recommendations of advisers on the flotation, who will be appointed in February or March.

"I intend to deal with this matter in the same manner as I dealt with the Telecom board," she said. In the Telecom case, several board members were replaced about six months prior to flotation, on the advice of the Government's advisers - AIB Capital Markets and Merrill Lynch - who said the board should consist of people with broad aviation industry experience.

Ms O'Rourke refused to comment on how many Aer Lingus directors would be replaced. "That depends on the advice I am given," she said.

On Tuesday, the Cabinet approved the flotation of the State airline. Although it has not been determined how much of the 95 per cent the State owns will be floated, it is widely expected that the entire stake will be sold. Market conditions permitting, an Initial Public Offering (IPO) could take place next autumn.

The board of directors comprises eight Government appointees and four worker-directors. If an employee share option scheme (ESOP) goes through, the worker/directors will ultimately be replaced by an ESOP appointee. Some non-executive directors could be compensated by up to £20,000 for loss of office. It is also likely that they will retain their perks of free flights and reduced rates for family members for the unexpired period of their terms of office.

Aer Lingus chairman Mr Bernie Cahill is set to retain his role, leading the company to flotation. An internationally respected businessman, who has held the Aer Lingus post since 1991, he is credited with restructuring the airline. He held the post of executive chairman for some time. He also led Greencore, the former Irish Sugar company, where he is still chairman, to the market.

He was reappointed Aer Lingus chairman for another three years during the summer. He is expected to play an important role, together with the management team, including chief executive Mr Garry Cullen, on the roadshows which will pitch to Irish, British and US investors prior to any flotation. The flotation could raise in excess of £600 million.

Mr Paddy Wright, who steps down next year as chief operating officer of Jefferson Smurfit and who was recently appointed chairman of the RTE Authority, is expected to retain his directorship. He was first appointed to Aer Lingus in 1992 and has wide international business experience.

Mr Jim O'Leary, who was appointed to the board in 1995 is also expected to remain on the board. A former economic adviser to Fine Gael, he is chief economist and head of fixed-interest research at Davy Stockbrokers, the Government's brokers.

Ms Rose Hynes, who was appointed to the board in April 1997, will probably retain her post. She is vice-president of corporate finance - legal with Aerfi, formerly GPA, and has considerable experience in the aviation industry.

As in the Telecom Eireann case, it is likely that the Minister will ask the directors to cede their roles, but will not force them to do so. One director of Telecom, Mr Paul Mackay, an accountant and Progressive Democrats trustee, refused to step down and is still a director of the company, now renamed Eircom. Another director who is likely to be asked to retire is Dr John Keane. He was appointed by Ms O'Rourke last December. A consultant ophthalmic physician with the Midland Health Board, he is from the Minister's home town of Athlone.

It is also likely that former Galway Fianna Fail TD and minister Mrs Maire Geoghegan-Quinn, who is also an Irish Times columnist, will be asked to retire. She is due to take up a £150,000 a year post in the European Court of Auditors in Luxembourg in February.

It is thought likely that those who accede to the request to resign will be paid directors' fees for the remainder of their directorships.