Taoiseach Bertie Ahern today accused Aer Lingus's former management team headed by Willie Walsh of attempting to "steal" the airline's assets in a management buy-out.
Answering questions in the Dáil today about the privatisation of Aer Lingus, Mr Ahern said the part-sale would go ahead when the time was right for the airline, suggesting a flotation before the summer is now unlikely.
"When the management wanted to steal the assets for themselves in a management buy-out and shaft the interests of the staff it was opposed by every trade unionist," Mr Ahern said during leader's questions this morning.
"I'm glad those individuals went on to prove their worth in the financial markets, but at least they didn't do it at the expense of Aer Lingus."
Labour Party leader Pat Rabbitte speculated that rising international oil prices had made airline stocks unattractive to investors and asked if the flotation would have to be deferred until 2007.
However, Mr Ahern said today that the Government was following the advice of its financial experts who would help it decide when the time was right for the part-privatisation of the national airline.
Mr Rabbitte cited the recent example of Air Berlin in Germany which he said saw its share price halved by hostile international market conditions.
But, referring to speculation about an expected summer sell-off, Mr Ahern told TDs: "A June date was never put forward by the Government. The Government would be totally irresponsible to go to the market without the advice of our financial experts in this area. We will do that when we believe that the time is right. It's still the view that that can happen this year."
Mr Ahern said Minister for Transport Martin Cullen continued to consult with trade unions on outstanding industrial relations issues at the airline.
Mr Rabbitte said that the "paltry" €400 million the Government was aiming to raise with the flotation could be dramatically reduced due to rising energy prices and lack of market demand for airline stocks.
"Are we going to sell the national airline for as little as €200 or €300 million," he asked.
He added: "We will be giving the national airline for a song and leave this island trading nation without any control over Aer Lingus in the future."
Mr Ahern reiterated that the State would retain a minimum stake of 25.1 per cent to protect its strategic national interest.
"The transaction will be implemented as soon as possible. It will take account of stock market conditions and the regulatory requirements that need to be fulfilled," he added.
Mr Rabbitte described the flotation of Eircom in 1999 as an unmitigated disaster and claimed that €70 million was paid in fees to advisers.