Ireland to value Aer Lingus stake for selloff

Ireland will value its 25 per cent stake in Aer Lingus ahead of making a final decision this year on whether to include it in a sale of state assets, a government spokesman said yesterday. Dublin launched on Wednesday a privatisation drive required under its EU/IMF bailout by announcing it would sell a minority stake in state electricity supplier ESB. It has yet to decide the timing or size of that sale. Ireland's transport minister Leo Varadkar said last week the government was considering selling its stake in former state carrier Aer Lingus as part of the commitment to raise euro 2 billion (Dh10 billion) from state asset sales. "With regard to Aer Lingus, the asset will be valued and any barriers to sale will be examined. A final decision will not be made until later in the year," a transport department spokesman told Reuters. "Any sale would have to realise sufficient value, as recommended by the [government-commissioned] McCarthy report. The stake would only be sold to the right buyer, at the right time, at the right price, with the right conditions." Varadkar told local media this week that there had been some interest in the government's stake following his announcement that it may be put up for sale. He has said Aer Lingus is no longer seen as strategic because the airline's prized slots at London's Heathrow airport had become less important due to the increase of direct flights from Dublin to other European hubs. Citing sources, the Irish Times said Thursday any sale would involve clauses that would protect the Heathrow slots being used for access to Irish airports and would ensure a continuance of the brand name.