Minister for Transport Martin Cullen has moved to strengthen the Aer Lingus board in advance of the airline's flotation next month with the appointment of four new directors for the business.
As corporate activity gathers pace in advance of the initial public offering in five or six weeks' time, it is believed that the airline's financial results for the first half of the year show that its profitability was "modest".
However, this was in line with expectations and the standard analysis that airlines typically make the bulk of their profits in the second half of the year. Overall, the financial position is regarded as satisfactory.
The new board members include Aer Lingus finance director Greg O'Sullivan, who will be an executive director. An accountant, he been with the airline since 1997. Before that, he worked for PricewaterhouseCoopers (PwC).
Three new non-executive directors include Danuta Gray, head of the O2 mobile phone service, and Thomas J Moran, an Irish-American businessman who is president and chief executive of the life insurance group Mutual of America.
The other is London corporate lawyer Michael Johns, a senior partner in Ashurst solicitors, who will be a representative of the Aer Lingus employee share ownership trust (Esot). Mr Johns has been legal adviser to Eircom Esot for a number of years, although his firm is not the formal legal adviser to the Aer Lingus Esot.
The Government has agreed to the nomination of a second Esot non-executive director - most likely Ictu general secretary David Begg - but he will not be appointed to the board until the flotation.
Following yesterday's appointments, Mr Cullen said the airline's board was "very well-positioned to steer the company through its next stage of development".
The Minister also thanked retiring worker-directors Frank Cox, Seán Murphy and Nora O'Reilly for their contributions.
The next stage of the process is likely to be passed next week when Aer Lingus issues a formal notification to the Irish Stock Exchange of its intention to float.
The flotation prospectus will be published the following week. With advanced drafts now in circulation among professional advisers working on the sale process, this document will include a detailed description of the airline's financial position and business plan.
Crucial to the expansion plan is the prospect of long-delayed reform of the bilateral US-Ireland agreement that restricts to only four the number of US cities into which Aer Lingus can fly.
While reform would provide additional scope for growth in the US market, there is a recognition that other US airlines would be able to avail of opportunities on routes into Ireland.
Aer Lingus acknowledges stiff competition from Ryanair on its short-haul business. While not downplaying that threat, Aer Lingus argues that it has carved out its own niche.
