FLS Aerospace, owner of the former TEAM Aer Lingus, would sell out if a suitable bid emerges, its president has said.

Mr Stephen Henderson said the aircraft maintenance group's key problem had been "under-performance", although he anticipated it would turn a profit this year.

The group, which employs 1,800 at Dublin Airport, needed investment to secure growth going forward. When asked whether it was seeking an equity partner or a takeover, he said: "All ranges of options are being explored."

Stating that global consolidation in the air maintenance industry was likely, he added: "In 2001, I'm taking the opportunity to assess potential opportunities for investment. That investment can come from a tremendous variety of sources."

While the business is thought to have realised a profit in the October-December period last year, it reported a €53.8 million loss for the first six months of 2000. That was more than twice the loss in 1999, before management embarked last January on what it called a "drastic turnaround process". Revenues last year were €415 million.

In an interview, Mr Henderson said: "In 2000, we took significant one-off restructuring losses that will not be repeated in 2001.

"The fundamental issue for FLS Aerospace has been under-performance. We have set realistic targets for 2001. If we achieve those targets, the company will be profitable."

When asked what options FLS Aerospace would have if it failed to secure investment he said the group was not in a "high risk" or "critical" situation.

Mr Henderson said the industry would restructure, although the group planned to be a longterm player. "Consolidations do take place, but one of my primary interests is to protect the employment and future of FLS Aerospace."

About 300 people left the group last year, including 60 at Dublin. Mr Henderson said there would be no further "right-sizing" this year at the group which has operations also in Copenhagen and in Britain at Gatwick, Manchester and Stansted airports.