The board of Aer Lingus strengthened its support for British Airways-owner IAG's takeover approach, saying that after talks with the airline, the deal made compelling commercial sense.
IAG's €1.36 billion takeover approach already had the qualified backing of Aer Lingus's board with a formal recommendation subject to the Government selling its 25% holding.
The Government has yet to be convinced, however.
"The board's view is that a combination of Aer Lingus with IAG has a compelling strategic rationale and will deliver significant benefits for Aer Lingus, its employees, its customers and for Ireland," chairman Colm Barrington said.
Aer Lingus's statement today provided more detail than its original recommendation.
It explained that Ireland would become a hub for connections, that the deal would accelerate Aer Lingus's planned transatlantic growth and lead to new employment.
"The strong view of the Board of Aer Lingus is that the prospect of Aer Lingus being part of the IAG Group has a compelling commercial logic for Aer Lingus, has significantly positive benefits for Ireland and is strongly supportive of the Irish Government's two airline policy, " Mr Barringon stated.
"Following a combination with IAG, Aer Lingus will have a markedly greater number of more attractive growth options that will significantly benefit the company, its employees, its customers, the tourism sector, Irish business and industry and the airports at which Aer Lingus operates and Ireland," he added.
Aer Lingus shares were lower in Dublin trade this afternoon.
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