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Everyone’s talking about…
Enda Kenny has confirmed the Cabinet will discuss the potential sale of Aer Lingus today.
This morning the Irish Times reports that the coalition has secured “significant concessions” from IAG and a sale of the State’s 25% stake in the airline is “increasingly likely”.
The paper said an expert group report commissioned by Transport Minister Paschal Donohoe is “strongly supportive of the deal”.
At Government Buildings today, Kenny said Donohoe “has received the report and he will present it at Cabinet”, adding: “I haven’t seen it.”
IAG has reportedly made commitments to the government on Aer Lingus’ coveted Heathrow slots, the use of Cork and Shannon airports, and the creation of new routes and jobs.
Speaking on Morning Ireland, Labour TD Joe Costello – who has been critical of the potential sale – said he is unsure of what concessions IAG has made, other than what he has read in the papers this morning.
I haven’t a clue in reality, other than the rumours …Remember the first offer was made in December last year – so it’s six months down the road before we’ve got what seems to be a firm offer coming from IAG.
“We have not got an opportunity to go through the details and we expect to do that in due course,” he added.
IAG has offered to pay about €1.36 billion for Aer Lingus, or €2.55 per share. Unions have raised concerns about the sale, claiming it could lead to job losses.
All eyes will be on the government later to see what call it makes, and if both Fine Gael and Labour will agree.
Inside Leinster House
Senator Averil Power’s former Fianna Fáil colleagues reacted angrily to her shock departure from, rallying around party leader Micheál Martin.
Her announcement will overshadow Bobby Aylward’s return to the Dáil after winning the Carlow-Kilkenny by-election.
The agenda
What the others are saying
In case you missed it
On the Twitter machine
Alan Farrell’s phone had a lucky escape…
Originally published: 9am
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Love the “if Fine Gael and Labour agree” bit, when we all know Labour will just do as they’re told.
Half of the Government’s share of the sale has to go back to the Troika under the terms of the bailout that relate to the sale of State Assets.
So that leaves the Government with one-eighth of €1.36 billion, i.e. €186 million. To put that in context, Irish Water spent THREE times that amount (€540 million) installing water meters.
Seems like a pretty bad deal for the taxpayer now, doesn’t it!?
“IAG offered €1.36 billion but was unfortunately rejected when DOB countered with a better offer of €10 million and positions of the board of Maltese Falcon airways for all involved.”
I’d say it will be a battle between DOB and Nestlé for Irish Water in 2019.
What will they sell next? Army, Gardai, Prisons?? Maybe the Aran Islands. #CLOWNS
DOB does not allow talk about DOB …..injunction to follow.
What about Teneo? Fairly strong political connection there.
Somebody call KPMG, they’ll arrange a shareholder sweetener to get the deal done. Shhh … don’t tell Michael Noonan. Later on Nooney will set up an investigation to find the missing millions. By KPMG.
Dennis is a menace with his anyone for tennis…..love to Dennis balls to Noonan
Whatever the “sweetener” is I bet it’ll be in a brown envelope !!!
So the big Sell Out of State Assets ( Citizens Assets ) continues by FG , ably assisted by FG beag ( Labour ) !
Siteserv , Irish Water , Aer Lingus – 500,000 of our young Citizens exported abroad !
What’s next from this awful rightwing Government ? Who would sell their Mother for a bit of profit !
Bring on The General Election ASAP .
Hi bud – you got a link to boast those stats. You talked some sh*t yesterday about Radio Kerry saying they have a ratio of 8 to 1. It’s 54% to 12% (roughly 9 to 2)
Complete and utter lies chum. I wouldn’t believe too many figures you come out with mo chara
FG/Lab will try to sweeten the deal by throwing in their grannies…..they’ve sold everyone else.
Baz – are you on the Bus from Letterkenny ?
I don’t think that you are taking your Gerryphobia Meds are you ?
You know what the Doctor told you Baz ? You will be back in the straight jacket again , if you don’t !!!
Hope you paid for your water – on the double ?
Paul, incorrect.
These days, its logins to secret HBSC Swiss Bank accounts. But you aren’t allowed to ask about that!
You got a link chum?
Didn’t think so
Baz, here you go
http://www.businessandleadership.com/leadership/item/49418-more-than-350-clients-with
http://businessetc.thejournal.ie/hsbc-tax-1927943-Feb2015/
Ask Edna, WHY have the Garda not investigated this ??
Except ff sold off EI. EI is not a state asset, it is a publicly quoted company.
In Cork ,boi,they are called ‘strait-jackets ‘ ..Thought the loony Baz would have corrected that little mistake ,like.
Once there’s money involved Enda n Joans rich buddies will make sure there looked after .
Dont mind Baz He is typical failgeal slime bag that Enda has on here .
its dobs, thats a dusting of brown sugar not the other dob
Neither fg or labour have the spine required to come to blows over anything.Both are disgusting carcases of democracy that will slimeball their way tru any circumstances to stay in their seats.
Okay, this is Ireland.
FIRST, lets start with the FULL disclosure of the NAMES of those in the “expert group”.
I think it’s sold but FG/LAB are only worried about the backlash it will have with election looming. Rats might just do it and abandon ship..
Labour TD will be will be like hens teeth after election on the sale of Air lingus
Are we forgetting that we are an island ? Selling off the national airline makes no sense.
What is sense got to do with FG and the selling (gifting away) of national assets? They don’t do ‘sense’, just finger licking cronyism.
Siteserv = corrupt.
Free the Swiss HSBC 350 – this injustice has to end!!
It’s not the national airline… We sold it years ago and now have just s minority shareholding…
Ryanair is closer to being a national airline anyway, it carries more people in and out of this country…
You are incorrect.
Its not really a national airline any more, as the government only owns 25% of it, and Ryanair owning close to 30%. long term it will probably be good for Aer Lingus ad dublin airport as IAG have plans to invest money in Aer Lingus, and possibly build a another runway in dublin.
As a condition of the sale the government are insisting it has to be rebranded O’Brienair after their favourite hero and brown envelope shuffler Dennis .
the deal is more than likely done this is just showboating
All FG/Lab say is we’re in a recovery and unemployment is tumbling and we’re ahead of targets. Yet they are selling off the family silver.. doesn’t make sense.
You go to a pawn broker if you’re smashed and need to be propped up short term. You completely sell off the family assets when you’re smashed and have nowhere else to turn.
The airline is being way undervalued. It’s parts are worth way more than what IAG are offering.
Massive cash reserves, a lot of stock and the gold dust that is Heathrow slots.
SAS sold a pair of Heathrow slots recently for €52m which values the 23 pairs of Aer Lingus slots at around €1.2bn. Then take into account the weak euro against sterling and IAG are getting an absolute bargain.
I reckon there might be a couple of board positions at IAG or their subsidiaries on offer to gov ministers when they retire as a sweetener.
It’s not as simple as multiplying 52 mil x 23…. http://www.irishtimes.com/business/transport-and-tourism/sas-nets-22-million-from-heathrow-slot-sale-1.2120499
The article said the prices vary but also said £1bn.
Bare in mind SAS sold an afternoon slot, Aer Lingus have slots for every time period of the day.
The fact remains that Aer Lingus slots at Heathrow and cash reserves alone are worth more than what IAG are paying for the whole company. The Euro is devalued at the moment against sterling and the dollar, this allows IAG to pay considerably less as they’re buying the shares in euro.
This is a bad deal and every Labour TD in Dublin will pay the price in the election. It doesn’t help the Aer Lingus employees bring represented by SIPTU and Impact as both are Labour is disguise and will only go so far to criticise the Labour part in the deal.
Baz if you pop up to Letterkenny i’ll pay for you’re bus ticket to the airport for you
*your
Too little, and far too late, Ms Burton.
Years ago it used to be about apointing ministers to mind the ‘silverware’. One to look after electricity, another transport etc.. But decades of missmanagement and corruption we as citizens own nothing. It’s a shame, and even though this is a small stake in Aerlingus its still something, and as long as we have a stake in it then it gaurantees our vital air links to bigger airports like Heathrow and Schipol.
I don’t see what we as a state have to gain by selling this stake. This money will be used to pay off bondholders anyway in one payment.Dead money.
One case that should make the government stop and think, although I doubt the government care is Air New Zealand’s disastrous privatisation which later required re-nationalisation. New Zealand like Ireland is a small island nation and when parent airline Ansett filed for bankruptcy the NZ government had to save Air NZ or be without indigenous air service. Air NZ has since become one of the worlds leading smaller airlines despite its state ownership when across the Tasman its privately owned rival Qantas is struggling. Unlike Lufthansa or Air France British Airways have no regional bases, everything in the UK is funnelled through Heathrow (except bucket and spade routes handled by Gatwick) why on earth would they suddenly take some interest in Dublin and whatever about Dublin they’ll have zero interest in what happens in Cork or Shannon when Manchester doesn’t even have a BA base. Also those Aer Lingus Etihad codeshares will likely vanish as Qatar is now an IAG shareholders, frankly there are a plethora of issues surrounding this sale that it seems the cabinet either didn’t consider or don’t care about because they need to make a quick buck.
It is ridiculous to compare Ireland with New Zealand based on size and demographics. Ireland is part of a much bigger EU trading block and is strategically positioned for cross Atlantic air traffic. New Zealand largely relies on Australia and China for it’s trade.
No, the Liars’ Party formally labour will once more abandon it’s electorate take pensions/perks/bribes/sinecures and to hell with the voter.
‘I haven’t a clue’: TDs aren’t sure what’s being offered to sweeten Aer Lingus sale. Hardly a surprise since its only now , everyone is finding out what was the sweetener for siteserv and the irbc. Backhanders and writedowns. Sure the government will have worked out the best possible deal and then go with the worst.
The only thing we know for definite is that AIG could offer every citizen in Ireland a free airbus 330, a trip to New York every year with €10k spending money and a cuddly toy and the Shinners would still moan saying they’re not happy as they want to protect the vulnerable in society.
Ha! Classic Baz with the ‘shinners’ rhetoric.
Look at them shinners over there!
LOOK AT THEM!!!!!
Baz, that’s some ‘shoe-horning’. I reckon SF are also responsible for Apollo 13.
Haha Baz is a classic clown alright.
Jabus Baz, you must of got an extra pat on the head from Heir Edna this morning, did he wear this costume for you again?
The adults would like to know what “commitments” where made to the to “the government on Aer Lingus’ coveted Heathrow slots”. Because in my eyes the much trumpeted FIVE years to promise, is a VERY short sighed gamble to take. IF you haven’t noticed we are an Island.
Government selling out the people again in favor of a corporation. Siptu selling out its members in favor of labour party,things are just not a changing.
Joes answer should read i haven’t a clue about reality!
Next thing labour will look for a guarantee from AIG for there Dail seats in next election
FG and Labour come to blows?
When puff comes to shush…
No way will they fall out, Labour will buckle again as they have done since 2011 :-)
Shame Alan did not stay with his phone….
This is one of my favourite regular journal segments.
It’s superbly done.
Not at all Labour will just be capitulating as usual
FFS. 75% of Aer Lingus was got rid of by FF – and Dublin Airport was in that Taoiseach’s constituency. It’s a bit late to be complaining about what happens to the leftovers now.
Until this corrupt dictatorships is disbanded.Ireland and its people are in deep troubled
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