1. Selling the Government Shares in Aer Lingus is Not the Most Profitable Option
Aer Lingus is not a loss-making company. It is a profit-generating company to the tune of 40-70 million Euro annually. The Government currently owns 25.1% of Aer Lingus shares (down from 85% in 2006 when the remaining 15% was owned by the employee trust) and is being offered 1.36 billion Euro for them from the blandly-named International Consolidated Airlines Group (AIG) – consortium formed by British Airways and Air Iberia.
The idea is that selling the Government’s shares would generate 1 billion Euro for the State in a time of dire need. However, this is a short-sighted way of viewing the issue.