Uproar in Dáil as Fine Gael and Labour move to sell off Aer Lingus

THERE WERE angry scenes in the Dáil on Wednesday as the Government and Opposition clashed as Fine Gael and Labour moved to sell off the state's remaining 25% share in Aer Lingus to the International Airlines Group (IAG) for €335million.

After much opposition within the Labour Party, a number of deputies U-turned on the issue and backed the privatisation plans. 

Sinn Féin and most Independent and the smaller parties vocally opposed the move, as did Fianna Fáil – despite a Fianna Fáil government selling off 75% of the airline in 2006.

The news is causing particular concern for jobs at the airline, with trade unions warning that as many as 1,200 could be lost. Previously, 4,500 jobs went when IAG signed a deal to take over Spain's Iberia Airlines in 2010.

Speaking in the Dáil, Sinn Féin Transport spokesperson Dessie Ellis TD (pictured) said Aer Lingus had built a reputation as a quality airline, ensured connectivity to our island for decades and given a positive image of Ireland globally. 

Hitting out at what he described as “Labour's pathetic subservience to Fine Gael's privatisation policies”, he noted that IAG are not a charity set up to provide connectivity and jobs to island nations but a private company designed to make profits for their shareholders, of which Ireland is not one.

For an island nation, the Irish state will lose the ability to ensure consistent and secure connectivity to other countries, particularly to Britain's Heathrow where Aer Lingus currently controls slots which are the envy of other airlines.

Transport Minister Paschal Donohoe says the deal includes a seven-year guarantee that these flights between Dublin, Cork, Shannon and Heathrow will be maintained.

Dessie Ellis TD said:

"IAG have no interest in Ireland and the government have failed to stand up for the interests of the country instead seeking to make a quick profit as an election looms. 

"The CEO of IAG made it clear in an interview last year that he desperately needs more slots at Heathrow for growing markets in Asia and South America in the long-term.

"It will be Aer Lingus's slots which provide essential connectivity for Ireland which will serve as these much-needed assets for IAG, a multinational conglomerate only interested in their profit margins and their shareholders."

Dessie Ellis said commitments by IAG to retain jobs ring hollow when one looks at Iberian Airlines which was bought by IAG at the cost of thousands of jobs.

“It's a mockery of democratic debate. The Government have made their decision behind closed doors and shown contempt for the Oireachtas. The weak and cowed Labour leaders will go along with it. Labour TDs knew they would sell out and that is why they outlined 'concerns' rather than real opposition.

“Labour will be punished by the people for this. Labour's subservience and silence is destroying the party from the inside. This is a bad deal and Labour knows it. Aer Lingus is worth infinitely more than the €335million they will get from cashing in its stake.”

● 2006: Sinn Féin protest at Dublin Airport against threat to privatise Aer Lingus