IAG willing to improve Aer Lingus commitments?

The chief executive of IAG Willie Walsh is expected to appear before Oireachtas Joint Committee on Transport and Communications on Thursday.

The news comes as reports from news agency Bloomberg suggest the company would consider improving commitments made last week to help win Government backing for a planned offer for Aer Lingus.

Should the Government make additional demands, then IAG is open to revising its proposal, people familiar with the situation said.

The IAG proposals so far includes guarantees not to sell Aer Lingus's slots at Heathrow or drop the carrier's brand.

A spokeswoman for IAG declined to comment.

Government sources described an earlier Bloomberg report which said that it was preparing to reject IAG's indicative offer for its 25% stake in Aer Lingus as "premature".

A final decision has yet to be taken.

Other concessions that IAG has made include a guarantee that it would operate slots on Irish routes for five years. The company has not specified any plans for job security, a key element for the Government.

Mr Walsh is trying to overcome mounting political resistance to the proposed takeover of an airline he ran until 2005.

To support his push, Walsh plans to travel to Dublin tomorrow to meet the Government review group, one of the people said.

IAG, which owns British Airways and Iberia, has said that it will not proceed without the endorsement of the Government.

The Aer Lingus board said on January 27 that it was prepared to recommend an indicative offer of €2.55 a share from
IAG, having rebuffed two earlier approaches.

The offer values Aer Lingus at about €1.36 billion.

Aer Lingus shares were higher this afternoon in volatile trade in Dublin. They had lost as much as 10% yesterday.