Olivia Mitchell (Dublin South, Fine Gael)
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Question 467: To ask the Minister for Transport if a decision has been made to sell a portion of Aer Lingus in order to top up the existing pension fund; and if so, if it is necessary to refer this decision to the EU Commission for approval under the State aid guidelines. [6949/06]

Martin Cullen (Waterford, Fianna Fail)
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On 18 May 2005 the Government agreed to the State disposing of a majority shareholding in Aer Lingus and retaining a stake of at least 25% to protect strategic interests provided that the Minister for Finance and I are satisfied that this level of disposal is warranted on foot of the analysis prepared by the Departments' advisers for the transaction. Following a competitive tender process UBS and AIB Capital Markets were appointed to provide financial advice and assistance to both myself and the Minister for Finance in relation to an Aer Lingus sale or investment transaction. William Fry and Freshfields Bruckhaus Deringer were appointed as legal advisers for the assignment.

The first phase of the advisers' work was to recommend the most appropriate transaction mechanism and advise on the size and timing of a transaction. Pensions are among a range of issues that were considered by the advisers during the first phase of their work. The advisers have submitted their report and this is currently being considered by me and the Minister for Finance. No decision has been taken in the terms implied in the Deputy's question.