General Industry

Irish Government In Talks With Aer Lingus About Further Financial Support

By Dave Simpson
Irish Government In Talks With Aer Lingus About Further Financial Support

The Irish government and Aer Lingus are engaged in discussions about the government providing further financial support for the airline, Tánaiste Leo Varadkar has said.

Ireland's sovereign wealth fund said earlier this month that it had provided a €150 million three-year loan to the airline, that is also a recipient of the state's wage subsidy scheme for firms that have been hit by the COVID-19 pandemic.

"To say very clearly, Aer Lingus will not be allowed to fail. It is already receiving substantial financial support from government. Discussions are underway on further support for the company so it is there when we need it again," Varadkar said.

He later added that when the government said that it will not allow Aer Lingus to fail, he did not want to create the impression that such a development is likely.

Financial Support To Retain Essential Connectivity

"What I am saying is that we will provide more [financial support] to enable us to retain essential connectivity, like, for example, [London] Heathrow, the United States and those key hubs in Europe," he said. "The sad truth is that the way things are going now, it could be a very long time before we see aviation recover...Saving all jobs and saving all routes may not be possible."

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.