Aer Lingus denies Etihad stake sales talks

A spokesman for the Irish transport minister has refuted a report published by a local daily that the minister would discuss the sale of the country’s stake in Aer Lingus Group to Abu Dhabi-based Etihad Airways, Bloomberg has reported.

Yesterday we reported that the purchase of a major stake in Irish carrier Aer Lingus will be discussed between Etihad’s Chief Executive Officer James Hogan and Ireland’s Minister of Transport when the two meet this weekend.

“But we have had preliminary talks with Etihad on the possible sale of the Aer Lingus asset and those talks are stalled,” Leo Varadkar, Ireland’s Minister for Transport, Tourism and Sport, said, according to news sources.

Since the September discussions, Etihad has spent AED443 billion (€95 billion) on a 29.1% stake in Airberlin. Other airlines and private equity funds have also expressed an interest in Dublin’s Aer Lingus stake.

Because of a close relationship between Dublin and Washington, any US-bound travellers from Ireland are pre-cleared in Dublin, something that Etihad would also find attractive.

However, transport minister Leo Varadkar will meet with Etihad CEO James Hogan during a visit to the Gulf, but will limit talks to “tourism matters,” said spokesman, John Carroll.

Source: NGI context