Three companies are still strong contenders to take a stake in TEAM Aer Lingus, according to informed sources. However, it could be up to three months before a deal is finally thrashed out.

As previously reported, BT Goodrich, a huge US conglomerate is in the running, but it is understood that at least two others are actively negotiating with TEAM. Among those which have been ruled out of the race are UPS, Virgin and Lufthansa.

The aircraft maintenance company has accumulated losses of £70 million but is expected to make a small profit in 1999. The company is said to be slightly ahead of target on this issue.

A major source of contention is the so-called letter of comfort which 1,100 of the employees have assuring them jobs in Aer Lingus. However, Aer Lingus does not have jobs for these personnel. It is believed that the issue will have to be resolved through paying the employees to forfeit the letters. Negotiations between legal teams for both sides are expected to take place on the matter in the coming weeks.