AER Lingus should be privatised, its former chief executive, Mr David Kennedy has said. He admitted that not being able to persuade the Government to do so while he worked there was probably his biggest regret.

There is absolutely no need for the Government to be a shareholder in Aer Lingus," he said. "I don't think there is any future for major international commercial enterprises which are State owned."

Mr Kennedy said the problem with Aer Lingus had always been that the Government never put equity into the company when it was in a loss making situation exactly the reverse of what should happen".

Mr Kennedy said there would be interest in Aer Lingus if it was making money - it made a pre tax profit of £41 million last year.

He pointed out that the company would need equity investment in the future. There are two ways to do this - either through a public flotation or through a strategic alliance.

Some industry observers have tipped British Airways as a possible potential suitor for Aer Lingus, which already has various marketing alliances in place, both with British Airways and others.

Mr Kennedy said that the danger here for Aer Lingus would be that the national airline would be absorbed by the much bigger operator, if British Airways was to put equity into the company.

He said the problem for Aer Lingus in trying to secure an alliance was that it "doesn't necessarily bring that much to the foreign partner".

Asked if TWA would be interested, he said: "Anything is possible in this world." Page 24