Talks are to continue between the Government and International Airlines Group (IAG) over guarantees on Aer Lingus’s Heathrow slots, after progress was made yesterday in a number of areas.

IAG representatives met the Government-appointed group advising it on the sale, with discussions believed to have covered plans for increasing employment at Aer Lingus and details of new routes to North America.

Sources believe that the chances of the Government agreeing to sell its 25 per cent stake to IAG have improved, but that some crunch issues remain, notably the length of time for which IAG would offer guarantees on the use of slots at Heathrow for flights from Dublin, Cork and Shannon.

Minister for Transport Paschal Donohoe confirmed that a meeting had taken place and that it addressed issues he had raised in a statement on February 24th, when he outlined initial Government reservations on aspects of the bid. “This engagement is continuing,” he said in a brief statement.