The government is urgently working to resolve a €336 million pension deficit at Aer Lingus in order to fast-track a €1 billion flotation of the airline.
Officials in the Department of Finance are understood to be working on several options, including a plan to issue new shares in the company before a flotation. These shares would be placed in a trust and used to partially offset the potential pension liability.
Sources in the department say there is a new urgency to resolve the pension issue in order to facilitate a flotation, possibly as early as September.
One informed source said the government was “pushing ahead with its plans for privatisation'‘ in line with a cabinet decision last year.
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Officials in the Department of Finance are understood to be working on several options, including a plan to issue new shares in the company before a flotation. These shares would be placed in a trust and used to partially offset the potential pension liability.
Sources in the department say there is a new urgency to resolve the pension issue in order to facilitate a flotation, possibly as early as September.
One informed source said the government was “pushing ahead with its plans for privatisation'‘ in line with a cabinet decision last year.
Article
