€1.4bn Aer Lingus sale put to Dáil
The Dáil will begin a two-day debate today on the €1.4 billion takeover of Aer Lingus.
TDs will vote on a potential sale to IAG tomorrow afternoon, after the cabinet last night agreed to sell the Government's 25% stake, which is worth €355m.
IAG has provided a seven-year guarantee that all of Aer Lingus's slots at London Heathrow will be used for Irish routes, as well as guarantees about connectivity. It also plans to create 600 jobs by 2020, including 200 next year.
Minister Paschal Donohoe has admitted that 50 jobs will be lost as part of the deal, and said Aer Lingus's CEO will need to make sure they are covered by registered employment agreements.
"For next year, we expect a total job creation of 200 jobs [and] a net job creation of 150 jobs," he said. "So there will be 50 jobs there that could change."
Crucially for many backbenchers, there is also a commitment to extend Dublin as an international hub, with the hopes of strengthening services in Cork, Shannon and Knock.
TDs representing constituencies close to the major airports have expressed some concerns about the plans.
Fine Gael's Alan Farrell, a TD for Dublin Fingal which includes Dublin Airport, has welcomed the extended deal on the Heathrow slots.
"I think that the veto of the slots at Heathrow is a positive - at present we do not have [one] … from that perspective, I think parts of this deal are much improved and far better – for the growth of Aer Lingus."
However, he expressed concern about the short-term future of the 50 staff who will lose their jobs.
Tourism Ireland said the decision will provide a major boost to tourism here - particularly from North America.
"It's a very positive development … what we're looking at now is a major expansions of our network into the North American market," said CEO Niall Gibbons.
He said that market had grown 7% in the precious year with a "record year" expected in 2015.
"The addition of four new aircraft servicing that market between now and 2020 is a major expansion for us … we see really good things to come from a tourism perspective."
Shannon Chamber of Commerce is one of the bodies that had raised concerns about the impact the sale of Aer Lingus could have on regional economies.
President of the body Kevin Thompstone has welcomed the guarantees about the Heathrow slots.
He said the seven-year timeframe given before any changes would be used to showcase the benefits of Shannon airport, but said he felt it was a very short time in the aviation industry.
