The process of Aer Lingus seeking a strategic alliance partner will take at least six months, according to the Minister for Public Enterprise. Following a meeting yesterday with the airline's chairman, Mr Bernie Cahill, Ms O'Rourke said the process had moved to "stage two" after the Government reviewed the Aer Lingus report on the issue. But there would be no further State financing of the airline.

She said there was agreement in principle for the option of giving a partner an equity stake in the national airline.

The terms and conditions of any deal were now a matter of preparation and she would be meeting regularly with Aer Lingus executives to review ongoing developments.

Ms O'Rourke said that she had met with the Shannon Airport workers lobby group, SIGNAL, on Tuesday, to discuss the ongoing viability of the airport's international status.

That status was "on the cards" as part of a deal where Aer Lingus would continue to use Shannon for transatlantic flights, she added.

"But that is only a guess, because we are only beginning the whole process," she said.

The question of Shannon's international status is threatening to become a major political issue again. Three Clare Fianna Fail TDs, the Minster for the Arts, Heritage and the Gaeltacht, Ms de Valera, and Mr Tony Killeen and Mr Brendan Daly will come under severe pressure to maintain the commitment to services via Shannon.

In relation to Mr Richard Branson's low-cost Virgin Express carrier, she said a decision on whether the that airline would establish its Irish base in Dublin, Cork or Shannon would be known by September 24th.