AER LINGUS'S board of directors is seeking to find an alternative candidate as chairman after financier Dermot Desmond last week informed the airline that he would not be in a position to succeed Englishman John Sharman, who steps down next March.

A source close to the airline confirmed that Mr Desmond told the Aer Lingus board that he would not be able to devote sufficient time to the post due to his various work commitments.

The approach to Mr Desmond is believed to have been made by banker Seán Fitzpatrick, a senior member of the Aer Lingus board and chairman of Anglo Irish Bank.

Mr Fitzpatrick heads the sub-committee of the airline's board responsible for identifying a suitable candidate for the chairmanship.

Mr Desmond's candidature for the high-profile role caused a stir with some shareholders after it was first revealed last month in The Irish Times.

Property developer and Aer Lingus shareholder Seán Dunne wrote to Mr Sharman on July 25th and questioned Mr Desmond's suitability for the role as chairman.

David Begg, the head of the Irish Congress of Trade Unions, and a non-executive director of Aer Lingus, had also expressed reservations about Mr Desmond taking on the chairman's role.

Mr Begg's concerns are thought to have revolved around the financier being a tax exile in Gibraltar.

The board of Aer Lingus is due to meet next on August 22nd. The airline will publish its interim results on August 28th.

The role of Aer Lingus chairman carries an annual salary of €175,000.