There has been much discussion in recent months, if not years, about changing the ownership of Aer Lingus by floating the company or selling all or part of it to private investors.

However, the idea of a management buy-out of what is the jewel in the crown of the commercial semi-State sector, has come as a surprise. It is an unusual idea, to say the least.

One analyst who takes an interest in the aviation business expressed the view last night that the move by chief executive Mr Willie Walsh and his two colleagues is aimed more at pressing the Government into finally making a decision, than it is about truly believing a buy-out is possible.

Aer Lingus has been transformed under Mr Walsh's stewardship. It is the only European flag carrier that managed to turn itself around in the face of competition from Ryanair and the low cost airline phenomenon generally.

Major players, such as British Airways, have no doubt considered the idea that what they need to improve their fortunes is Mr Walsh, and it is thought in the marketplace that he is likely to have been the focus of some very generous offers in recent times. However, Mr Walsh may not want to leave Aer Lingus and then see it privatised some months later, perhaps with his replacement managing to pick up a valuable shareholding. For this reason he may wish to try to force the Government's hand.

Airlines tend to have recurring business cycles, with good times being followed by slumps, a crisis, and then, if lucky, recovery. Aer Lingus has undergone a tough cost-cutting and job-shedding programme and is in reasonably good financial health.

From a marketplace viewpoint, it it may be a good time to sell. In a few years time a sale could be a lot more difficult to achieve if economic conditions and market sentiment change.

Furthermore, the airline needs additional investment to pay for more cost-cutting measures as well as funding the replacement of part of its longer-haul fleet. The monies are unlikely to come from the Government which has been slow to grasp the privatisation nettle. The recent elections may have made the Aer Lingus executives feel the Government is less likely than ever to come to an early decision on the matter.

A discussion paper was presented to the Cabinet by the Minister for Transport, Mr Brennan, a few months ago, as an effort to encourage the Government to focus on the issue. No decision has yet been made and now Mr Walsh and his colleagues have made their proposal.

The statement from Mr Walsh ups the ante as a negative response, or a fudge, and could lead to Mr Walsh deciding to leave the airline to take up more lucrative employment elsewhere. That would be viewed in many quarters as a disaster for the airline.

Sources say that because of the sensitivities involved, Mr Walsh and his two colleagues have not held discussions with any potential backers. They have secured agreement from NCB Corporate Finance that it will act for them if Mr Brennan gives them the go ahead, but that is the extent of any approaches made.

The legislation is in place for the sale of Aer Lingus and an Employee Share Option Trust with a 14.9 per cent stake, is being put in place.

SIPTU president, Mr Jack O'Connor, responded to yesterday's development by saying the union is against the privatisation of Aer Lingus and will maintain that policy. However, a valuation of the company at €500 million would give a value of €75 million to the employees' stake and that is likely to weigh on their minds.

The analyst believes a flotation is unlikely and that a sale to another airline would be contrary to the national interest. A controlling stake being sold to Irish and foreign non-airline investors, would be the optimum outcome, he believed.