Three Reasons Why The State Should not Sell Its Aer Lingus Shares

Three Reasons Why The State Should not Sell Its Aer Lingus Shares


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.