IAG TAKEOVER OF AER LINGUS APPROVED

THE IRISH GOVERNMENT has agreed to sell its 25 per cent stake in Aer Lingus to British Airways’ parent company, International Airlines Group (IAG).

Aer Lingus has accepted a £1 billion takeover bid from IAG but needs the approval of both the Irish government, which it now has, and Ryanair.

The latter has a 29.8 per cent stake in the airline but has been ordered to cut this to 5 per cent by the competition watchdog. As we went to press, Ryanair was due to appeal this final decision.

The deal also requires the approval of the European Commission. Etihad Airways has said it will sell its 4.99 per cent stake in the Irish flag carrier.