IAG chief executive Willie Walsh said it is prepared to offer “cast-iron legal guarantees” on Aer Lingus’ 23 Heathrow slots if a takeover bid was completed.
Walsh told Irish MPs on Thursday that if a buy-out was completed the slots at Heathrow would continue to be owned by Aer Lingus “for at least five years”.
He also said “there was no reason for anyone to be concerned” about the future of Heathrow routes to Cork and Shannon.
Walsh was speaking to MPs in Ireland seeking government approval, which is needed if the €1.36 billion bid for Aer Lingus is going to be completed.
Aer Lingus has previously stated it’s willing to accept a takeover from the British Airways owner of €2.55 a share but proposals put forward have so far failed to gain approval from government and trade unions, who want stronger guarantees over jobs and routes.
Walsh added: “We’re operating in a very competitive industry that is consolidating. Aer Lingus is a small carrier in global scales… its opportunities are much more interesting and significantly better as part of IAG than it is alone”.
Other commitments made by IAG include a guarantee that Aer Lingus’ Heathrow slots cannot be sold to other airlines and that Aer Lingus’ name, head office location and company incorporation in Ireland cannot be changed.
“These are protections that the government does not have today,” IAG said in a statement.
Dublin Airport Authority chairman Padraig O’Riordain said a deal by IAG could “contribute significantly” to growth at Ireland’s biggest airport, especially in transatlantic traffic. “It appears there may be some potential positives for Dublin airport should the takeover proceed,” he added.
Walsh’s comments come as Ryanair, which holds a 29 per cent stake in Aer Lingus, has been told by the UK competition Commission to reduce that by 5 per cent. It is appealing this decision.