Talks to increase the stake in Aer Lingus owned by staff will restart following discussions yesterday with the Minister for Public Enterprise, Ms O'Rourke.
These are likely to see an additional 9.9 per cent of the State airline transferred to workers before a possible trade sale. Workers already own 5 per cent of the company under a scheme agreed at the time of the Cahill rescue plan in 1994.
According to Government sources, a trade sale would require a mechanism for the transfer of the workers' share, if agreement is reached.
Talks on a share scheme - in advance of a possible flotation - were suspended last August when the industrial relations situation worsened, leading to a spate of strikes during the winter. Ms O'Rourke has now asked advisers to "take soundings" on the prospects of selling the company to the highest bidder.
AIB Capital Markets and Citigroup were told at a meeting with the Minister yesterday to report within weeks on their assessment of the feasibility of a trade sale.
The groups were engaged last year to co-ordinate the flotation of the State airline, but that is now off the agenda.
Ms O'Rourke's spokesman said the process was at an early stage. The Minister met representatives of the IMPACT union yesterday. Like SIPTU, which also represents airline staff, IMPACT is opposed to a trade sale. Its aviation official, Mr Michael Landers, said the possibility of State support should be examined.
He said: "We would see a trade sale as the worst of all options. At the moment, it's a bad time to be doing anything with Aer Lingus. It's not a good time to float the company."
SIPTU's national industrial secretary, Mr Noel Dowling, met Ms O'Rourke last Friday. While stating that he was not complacent about trading difficulties, Mr Dowling said he did regard the question of ownership as an "immediate issue".
Ms O'Rourke also met the Aer Lingus chairman, Mr Bernie Cahill, last night.
A subcommittee of the company's board has asked its chief executive, Mr Michael Foley, to make a written or oral submission by Friday. Two complaints of sexual harassment against Mr Foley were upheld and the subcommittee has been asked to take disciplinary action. Mr Foley protests his innocence.
