NEW YORK (The Deal) -- Irish airline Aer Lingus Group's sale to its larger U.K.-based rival International Consolidated Airlines Group is still waiting on the tarmac in Dublin, as politics and union opposition continue to get in the way of a government response to the proposal. The government, which owns 25.11% of Aer Lingus, is facing pressure from both opposition politicians and trade unions to reject IAG's offer, which values the airline at around 1.36 billion euros ($1.54 billion). The delays come despite controversial remarks from Myles Worth, secretary of the Aer Lingus workers' Central Representative Council, who told Irish radio during the weekend that he believed the airline staff was broadly in favor of the bid. But other unions and the CRC's own officers on Monday moved to dissociate themselves from his views. In a statement, the CRC officers said that Worth had expressed his personal views. The Aer Lingus board has said it would be ready to recommend the revised offer of 2.55 euros a share, including a cash dividend of 0.05 euro a share. But in a presentation to the Irish parliament's Committee on Transport and Tourism, dated Jan. 29, which the CRC officers insisted was still consistent with their position, the unions warned that many back-office jobs could be moved from Ireland to the U.K. with a devastating effect on employment in Ireland. They also warned that Ireland's "connectivity" to the U.K. and the United States might be affected, through a possible loss of Aer Lingus' takeoff and landing slots at London's Heathrow Airport. "For strategic reasons, these slots were vested in Aer Lingus and still remain within after the IPO in 2006," the presentation said, "which the then Minister for Transport, Mr. Martin Cullen ensured us that the state would retain a minimum of 25.1% to use as a blocking vote (sic), should a predator ever try to acquire or sell this vital state asset. "The situation has not changed since 2006." Other Irish unions, including the pilots' and cabin crew association Impact and the separate Irish Airline Pilots' Association, have reportedly also dissociated themselves from Worth's remarks. In the meantime, the government has set up an interdepartmental group to take evidence from all sides on the issue, and Deputy Prime Minister Joan Burton has said it will wait for comprehensive information and advice before making a decision. Must Read: Bank of America’s 10 Top S&P 500 Stocks to Buy for 2015 The spat comes one day before the Irish parliament's EU Affairs Committee is due to discuss the economic interdependence between Ireland and the U.K. and the likely effects on the Irish economy should the U.K. vote to leave the European Union. However, the Aer Lingus board held its own meeting with the interdepartmental group on Feb. 11, telling members of parliament and the Minister for Transport, Tourism and Sport, that a deal would enhance the country's position as a natural hub for Europe and the North Atlantic and result in better use of the infrastructural investment that has already taken place at Irish airports. The board also told the meeting a deal would accelerate its transatlantic and long-haul growth plans and add new U.S. destinations to its network; create a significant number of new jobs in Ireland, including highly skilled jobs within the airline itself and other indirect jobs in support activities and tourism; improve connectivity to and from Ireland and give the airline access to IAG's global cargo network. In addition, the company would directly benefit from sales and marketing on its behalf by its new partners in IAG, British Airways , Iberia and Spanish budget airline Vueling as well as members of IAG's wider Oneworld Alliance, which includes American Airlines and Mexicana Airlines operator Cia. Mexicana de Aviación. Aer Lingus finished the day up 0.9%, at 2.24 euros, on the Dublin exchange, while in London IAG rose 2% to 562 pence a share. Must Read: 10 Best Airline Stocks for 2015 Read more from:
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