IAG offer to buy Aer Lingus facing political obstacle

Caitlin Morrison
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Irish leader Enda Kenny is facing calls to step in
THE PROPOSED takeover of Irish airline Aer Lingus by International Consolidated Airlines Group (IAG) has come under fire in the Irish parliament.

The Irish government owns a 25.1 per cent stake of the national flag carrier, which is close to agreeing a €1.36bn (£1.01bn) sale to IAG.

Timothy Dooley, transport spokesman from the opposition Fianna Fail party, called on the government to reject the takeover, citing worries over job losses.

Aer Lingus declined to comment on the possibility of job losses. But an IAG spokeswoman told City A.M.: “It’s obviously an aim for all airlines to run their organisations as efficiently as possible. Aer Lingus has been restructured in recent years to remain competitive.” She was referring to the restructuring that the Irish company unveiled in 2009, which saw over 500 jobs lost.

The IAG spokeswoman also commented on opposition to the proposed takeover: “We think that by being part of IAG the Aer Lingus brand and long-term future would be secured.”

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