The Aer Lingus sub-committee charged with examing the future options for the State airline has held its first meeting this afternoon, nearly a week after the resignation of its three top executives.
The sub-committee, made up of the Taoiseach Mr Ahern, the Tanaiste Ms Harney, the Minister for Finance, Mr Cowen and the Minister for Transport Mr Cullen - studied the options outlined in the recent Goldman Sacchs report on the airline.
These include a stock market floatation similar to the Eircom privatisation, an injection of funds from private investors or no action at all.
In an interview with RTE'sWeek in Politics programme, Minister for Education Ms Hanafin said the decision on the future of Aer Lingus would definitely be made before Christmas.
The national carrier has been pressing the Government for a decision because it wants to raise up to one €1 billion over the next five years to fund its expansion. Under current EU regulations, it would be difficult for the Government to grant the company this money in state aid.
SIPTU, which represents workers at Aer Lingus, has said it was not aware of the Government's plans for privatisation.
"No case has been presented to the union at this point in time supporting privatisation or part-privatisation and the union's position remains one of opposition to the same," said a spokesman.
Last week, Aer Lingus chief executive Willie Walsh, Chief financial officer Mr Brian Dunne and chief operations officer Mr Seamus Kearney announced their resignation. Their proposal for a management buy-out of the airline had earlier been rejected by Mr Ahern.