Headlong rush on Aer Lingus

The record high reached by the Irish stock market last week – with the ISEQ index breaking 8,000 – suggests that this might be a perfect time to raise large amounts of cash for Aer Lingus by way of a stock market flotation.

However, it now seems that the chances of anything happening before the summer are slim, notwithstanding the contradictory reports of recent days and the company's continuing optimism.

The decision of the Oireachtas Transport committee to conduct an "investigation" into the privatisation process should be causing despair at the company, if there are people there with the ability to read the political tea leaves.

Labour spokeswoman Roisín Shorthall, (pictured to the right) who moved the motion and who had it accepted, said there had been a "headlong rush" into the sale of the airline. She must be joking.

The arguments have raged for over seven years and were particularly prominent at the time when former chief executive Willie Walsh offered to lead a management buyout prior to quitting. The Government made a conclusive decision to sell a majority share last year and Bertie Ahern has reaffirmed his commitment, both publicly and to the company's management, on a number of occasions.

But with Bertie it is never as simple as that. Conspiracy theorists may notice that while the motion calling from the inquiry came from Shortall, it was supported by a number of Fianna Fáil members. Which is useful for Bertie who won't want a fight with the trade unions over Aer Lingus prior to concluding a new partnership deal.

Management must realise now that it is in a quandary. It has ambitious plans for expansion that will require about €2 billion in funding, not all of which can be borrowed. It has also a €200 million pension fund deficit to fill. The State is unlikely to supply the amount of investment that could come from the private sector, about €600 million, irrespective of political and union demands.

Laughing in the background must be Michael O'Leary at Ryanair. Much of his company's growth has been outside of Ireland but he opens five new routes from Dublin in April and will add another 13 over the next year. This will allow Ryanair to become the biggest operator out of the Irish market while politicians celebrate the once obvious but now more redundant benefits of a State flag carrier. Management at Aer Lingus knows that, but ideologists want to have another debate because as politicians they reckon they know better than the people who run the businesses.