Aer Lingus has sold a subsidiary employing 60 people to a group linked to the unit's former chairman.

The State airline's latest annual report discloses that it sold its wholly owned ticketing business, Aviation Services (Ireland) Ltd, last June. The airline's chief financial officer, Mr Brian Dunne, said consideration paid by the purchaser, Custom House Financial Services Ltd, was less than €1 million. The company is linked to former Aviation Services chairman Mr Gerry Kelly.

Aer Lingus put the company on the market last January through its advisers, NCB Corporate Finance.

The subsidiary was not advertised for sale but a company source insisted this was not unusual because the business was very specialised.

A "trawl" by NCB Corporate Finance had delivered 20 expressions of interest, which the source claimed was an achievement. The process was "perfectly normal". There were four bidders in the final shake-out, three of which were linked to past or present Aer Lingus personnel.

It is believed Mr Kelly resigned as chairman of Aviation Services but remained a board member when his interest in the Custom House Financial Services consortium emerged.

Aviation Services was profitable, but the scale of its profits or revenues was not disclosed.

Custom House Financial Services is registered at Fleet Street, Dublin.

Companies Office records show its directors are Mr Joseph O'Leary, described as a sales director, and Mr Brendan Mary Smyth, an accountant.