A merger between Aer Lingus and British Airways parent IAG could be a step closer after the Irish flag carrier’s main shareholders indicated their willingness to sell.
The Times reports that the Irish government and Ryanair, Aer Lingus’ two biggest shareholders with 25% and 29.8% stakes respectively, could sell.
Aviation industry analysts have reportedly tipped Air France-KLM as being a likely rival bidder to IAG.
Ryanair’s apparent willingness to sell was said to be a surprise, the budget carrier having had two attempts to take over Aer Lingus blocked by competition authorities in Europe.
The carrier said in a statement that it would enter discussions with a “strong airline or investor” looking to acquire the Irish government’s stake and would not rule out entering discussions about selling its own interest.
IAG boss Willie Walsh has previously indicated the BA Iberia parent would lead consolidation in the aviation industry and was said to have a ‘hit list’ of potential takeover targets.
Aer Lingus has the third largest presence at Heathrow and owns 3% of the airport’s valuable landing slots.
Credit Suisse analyst quoted by The Times believed that IAG was likely to be most interested in these slots, and that the rest of the businesses may not be as attractive.
Another potential barrier to a bid was said to be Aer Lingus’ multi-million pound pension deficit.