Tensions between the Government parties over aviation policy eased last night with the appointment of Dermot Mannion as the new chief executive of Aer Lingus, writes Emmet Oliver and Mark Brennock.
Mr Mannion's appointment, almost six months after Willie Walsh announced his decision to step down from the role, brings the sale or partial sale of the company closer and appears to end the debate within Government over whether the airline should go the privatisation route.
The statement this week from Minister for Transport Martin Cullen that a majority stake in the airline would be sold is believed to have played a major part in the airline announcing its decision to appoint Mr Mannion.
Mr Mannion (47), the Sligo-born executive from Dubai-based airline Emirates, takes up his new position in August. Aer Lingus said last night Mr Mannion would be seeking to extract "further cost out of the airline" in line with the Aer Lingus business plan agreed last year.
The chief executive's position commands a total remuneration package of €544,000. Mr Cullen said Mr Mannion was coming to Aer Lingus with a proven track record "earned at one of the world's leading airlines".
Previously the Government linked the issues of Aer Lingus and a new terminal for Dublin airport together, but with Mr Mannion's appointment they have effectively been separated. There is now broad agreement that Aer Lingus will be at least partially sold, most likely early in 2006.
Meanwhile, tensions over the airport terminal issue also appear to be lessening, according to political sources.
The Taoiseach and Tánaiste both played down reports of serious Cabinet divisions over future aviation policy yesterday. Officials from the offices of the Taoiseach, Tánaiste and Minister continued detailed talks on the future of Dublin airport yesterday and are aiming for a final decision on the matter at a Cabinet meeting on Tuesday week.
Mr Ahern insisted yesterday that a decision on the matter would be made "shortly", while Ms Harney said she believed the Government would resolve its differences on the matter. These two and Mr Cullen are expected to discuss the matter over the coming week. There seems to be little difficulty over the proposal that the Dublin Airport Authority build a second terminal at Dublin Airport.
However, the PDs are determined to ensure that this terminal be a low-cost one, with features such as relatively basic check-in and baggage-handling.
However, Fianna Fáil Government sources said this was never in dispute and the new facility would meet modern low-cost airline requirements.
The key outstanding issue is who should operate that terminal, with Mr Cullen indicating he is open to its being run by the DAA or an independent operator, while Ms Harney insists it should be an independent operator.
The Taoiseach said yesterday that Mr Cullen would bring his proposals to Cabinet "shortly".
Ms Harney yesterday emphasised to reporters that the Coalition parties "have been in Government for nearly eight years" and that they have had "a good working relationship".
She went on: "Clearly different parties have different perspectives at different times but we have always been able to work our way through problems that arise and I am sure we will be able to do that on this occasion. I certainly hope so."
Meanwhile, Mr Mannion himself said last night: "I'm very proud to have been chosen to succeed Willie Walsh as CEO of Aer Lingus. He will be a very hard act to follow but I sincerely believe I can bring some of the great dynamism and entrepreneurial spirit of Emirates to build on the continuing achievements of the Aer Lingus management team".