Aer Lingus stake may be sold to Etihad

Aer Lingus shares jumped after he government announced it might sell its stake in the company to Abu Dhabi-based airline, Etihad.

Shares saw a tidy increase of 11.7 per cent in Dublin yesterday, after reports that Etihad has already shown an interest in purchasing the governments part of the company. Many believe Etihad expressed their interest in the Irish flag carrier earlier this month at the Global Economic Forum in Dublin Castle.

According to the Irish Times, Etihad chief executive James Hogan attended the forum and held separate, private meetings with Taoiseach Enda Kenny and Minister for Transport Leo Varadkar. Mr Hogan also used the visit to announce Etihad’s intention to hire more than 100 cabin crew from Ireland. So, they’re buying a quarter of Aer Lingus off the government and also giving 100 of our women jobs. Nice bunch of lads’.

However, when asked about the Aer Lingus move yesterday, the royal family in Abu Dhabi, who owns Etihad, declined to comment. As did Aer Lingus who said they have no comment and that it was a matter for the government, as the owner of the shares.

Ryanair’s Michael O’Leary said that he was “surprised” by the move saying that Etihad did not approach him for his 29.8 per cent stake in Aer Lingus.

Etihad have wanted to break into the trans-Atlantic market for some time but they can’t do so as they incur heavy taxes due to the company being not from Europe. However, buying into Aer Lingus will allow them to break into the market.

And you never know, the Aviva may soon become the Etihad.