Qantas CEO Alan Joyce backs Aer Lingus​ sale

Qantas CEO Alan Joyce says he is a fan of consolidation and believes IAG should be allowed to buy Aer Lingus

John Mulligan

The Irishman who heads up Australian airline Qantas believes that IAG should be allowed to buy Aer Lingus.

Alan Joyce, a former Aer Lingus employee who was once approached to be the Irish airline's chief executive, said he's in favour of consolidation in the airline industry.

He hopes that the "right conclusions" are arrived at by the Government in relation to the future of Aer Lingus.

The support from the leader of one of the world's most high-profile airlines comes just a week after Virgin Atlantic, founded by Richard Branson, said it has concerns about the planned takeover and how it would impact consumers.

"We're very big fans of consolidation," said Mr Joyce, who has been the boss at Qantas since 2008. "One of the things that's very clear here is how well Aer Lingus has contributed to the world aviation market. It's a great brand and done a great job for Ireland."

But he said consolidation should be embraced in the aviation industry.

Earlier, Transport Minister Paschal Donohoe refused to be drawn on speculation that the Cabinet could be ready to make a decision on a possible sale of the Government's Aer Lingus stake just after Easter.

"We are still having discussions in relation to the range of different matters," he said.

The future use by IAG of take-off and landing slots at Heathrow currently controlled by Aer Lingus remains a hurdle.

But Mr Donohoe said other issues remain on the table.

"We are still having discussions in relation to the range of different matters that we have touched on," he said.

Mr Donohoe and Mr Joyce, along with other aviation executives, were attending the CAPA Airlines in Transition Conference in Powerscourt, Co Wicklow.

Aer Lingus chief executive Stephen Kavanagh said he's hopeful that a decision might be made by the Government within the next few weeks.

Mr Kavanagh also confirmed that IAG has completed its due diligence phase, which has involved trawling through sensitive Aer Lingus documents that reveal in more detail its financial performance and strategy.

He said: "We remain hopeful that the right recommendation is forthcoming. We're not in any way complacent."