The State's 25 per cent stake in Aer Lingus was back on the agenda this week after Abu Dhabi-based Etihad, a partner of the Irish airline, increased its shareholding in the company to 4.11 per cent from 2.98 per cent.
The Government signalled it could be willing to sell its stake in the once wholly State-owned Aer Lingus two years ago, when it put a number of the Republic’s assets on the block with what ultimately turned out to be mixed results.
Late last year, Minister for Transport Leo Varadkar ( right ) said the Coalition was no longer actively pursuing a sale, and stressed it would only part with its Aer Lingus holding at the right time, the right price and under the right conditions.
Those conditions would involve the buyer making certain commitments to the Republic. Following Etihad’s move, he repeated what he said last year.
Nevertheless, the Middle Eastern carrier’s move set tongues wagging and there was speculation once again it had its eye on the State’s share in Aer Lingus.
The Government's Aer Lingus stake may not be for sale, but Ryanair could yet be forced to sell 24.9 per cent of the company, should it fail in its attempt to appeal against a ruling by the UK Competition Commission that it cut its 29.9 per cent holding to 5 per cent.
An appeal tribunal recently upheld the commission’s ruling that Ryanair reduce it stake in Aer Lingus. Ryanair plans to challenge this in the Court of Appeal in the UK, but some lawyers think it will get no further.
If Ryanair does run out of road, this would result in a forced sale of 24.9 per cent of Aer Lingus. If Etihad were to buy this, its stake would increase to 29 per cent. That would see it replacing Ryanair as the largest shareholder, a situation with which, one suspects, both Aer Lingus and the Government would be very happy.