AER Lingus is expected to conclude negotiations this weekend on heads of agreement for the sale of its aircraft maintenance subsidiary, TEAM.

The purchase price is expected to be at least £30 million, most of which will go to fund a "buy-out" of workers' entitlements in return for agreeing to transfer to the new owners.

Part of the takeover package is expected to include provision for the resolution of all outstanding industrial relations problems within TEAM before Christmas. In that event, the transfer of the aircraft maintenance plant to its new owners could be accomplished by March 1998.

BF Goodrich is expected to emerge as the successful bidder for TEAM, but other potential investors are still in play. Allied Signals is thought to be the next most likely bidder for the company.

The TEAM unions were told on Tuesday that Aer Lingus expected to sign heads of agreement before next Monday afternoon. The heads of agreement will allow for a three-month due diligence process, which will include the resolution of all outstanding industrial relations problems.

The precise price that TEAM will fetch is unclear but most of the proceeds will go towards buying out the workers' rights as employees of Aer Lingus. The parent company has already offered a buy-out package to the unions worth £25 million.

The key entitlement for 1,200 of the 1,600-strong workforce is the letters of guarantee they hold as former Aer Lingus employees. The letters entitle them to return to Aer Lingus with their service, pensions and other entitlements intact.

The chairman of the TEAM group of unions, Mr Eamon Devoy, says that when the group met with management on Tuesday, it made clear that it could not negotiate away the letters on a collective basis. "The letters are individual to each worker and this means that the process of resolving outstanding issues will be extremely difficult to bring to a conclusion."

Progress may be possible more easily on other issues. The company told the unions that, in the transfer of undertakings to a new owner, provision could be made for preserving the existing service, seniority and pension entitlements of TEAM workers.

TEAM workers will also be seeking the restoration of pay parity with colleagues in Aer Lingus. The pay gap now stands at 7.5 per cent.