British Airways parent company IAG has been urged to act quickly if it wants to secure a £1.36 billion takeover of Aer Lingus.
IAG has submitted a number of proposals in an attempt to secure approval from the Irish government, which is needed if the bid is to be completed.
It said its proposal would “secure and strengthen” Aer Lingus’ long term future and brand as a member of a “successful and profitable” European airline group.
However, the proposals put forward have so far failed to gain approval from Irish government MPs and trade unions, who want stronger guarantees over jobs and routes.
A senior government source told Reuters: “If IAG are going to do something they have to do it very quickly if the entrenched positions people have been forced to take are to be unwound.”
Irish transport minister Paschal Donohoe said he was dissatisfied this weekend after a second round of meetings between IAG and the government.
“We, as a shareholder, remain to be convinced regarding the merits of what they’re putting forward,” he said.
As part of the proposal IAG has offered guarantees that Aer Lingus’ Heathrow takeover slots will not be sold if a deal is completed.
It also committed to operate the slots on Irish routes for five years and the Aer Lingus name, head office location in Ireland will not be changed.