Aer Lingus is expected to make a decision regarding the flotation of the airline next month, Enda Corneille, the group's commercial director said yesterday.

Mr Corneille made the comment at an event to mark the airline's 70th year of service. However, a spokeswoman for the company later rowed back on the statement.

"Aer Lingus is working towards resolution of the process as quickly as possible," she said, denying that a date had been set for a decision about the flotation.

The timing of the planned flotation has been the subject of widespread speculation, with the company seeking a quick resolution so that it can use the proceeds of the sale to modernise its fleet and the unions opposing the process.

The disappointing entrance of Air Berlin to the market earlier this month, when it was forced to cut its asking price, has also increased pressure on the Government as to whether this is the right time to sell the business.

Earlier this week, the Government said Aer Lingus was unlikely to list on the stock market before September.

Reiterating this point, Taoiseach Bertie Ahern told the Dáil that he still expected the airline to come to market this year, but denied that the Government had ever said that it would meet the June deadline sought by the company.

Aer Lingus chief executive Dermot Mannion said earlier in the year he hoped for an initial public offering (IPO) by the middle of the year.

Alongside the external factors weighing on Aer Lingus's eventual flotation, the company is also facing several internal barriers to a deal. There is still no agreement on what should happen to the airline's pension fund, although the company has agreed to put €70 million from the proceeds of the IPO towards a new supplementary fund.

In addition, there is no agreement on staffing levels for the company and the unions are continuing to press for a pay increase.