Sinn Féin has demanded that Aer Lingus be retained in State ownership. Moving a motion in private members' time, transport spokesman Sean Crowe said his party believed privatisation would not work for the airline.
"In the long run, privatisation costs the taxpayer more money. It loses jobs throughout the economy, not just in the company that ends up being asset-stripped and sold off, but in other economic sectors, too."
Mr Crowe said this had been amply demonstrated in the cases of Eircom and now the ESB.
"In the Eircom case, we are witnessing a slow decline towards failure," he said.
"Today, more than five years after the privatisation hype that accompanied the Eircom share launch, we have a company clearly in difficulty."
Mr Crowe said there was a breadth of vision required for Aer Lingus in the time ahead.
"It needs to be developed in the context of a strategic direction for all the airline industry in Ireland, that would include on an all-Ireland basis, international and regional airports."
Minister for Finance Brian Cowen said the Government's decision on the matter was the culmination of detailed and comprehensive consideration of the various options facing the company that had taken place over the past year.
Mr Cowen said that a key part of the decision was the mandate to the board of Aer Lingus to prepare and submit a plan for future profitable growth as soon as possible on the basis that additional equity capital will be available within a reasonable timescale.
The decision, he added, allowed Aer Lingus to secure funding for new aircraft and in turn to open and compete on new routes, particularly long-haul routes.
He said that with access to funds and a competitive cost base, Aer Lingus could continue to make a major contribution, offering more choice, opening new markets and growing jobs.
