An investment company owned by Ryanair chairman Mr David Bonderman has explored the possible purchase of Aer Lingus.
Informed individuals said yesterday Mr Bonderman's company, Texas Pacific, recently expressed tentative interest to the Department of Transport in acquiring part of the State airline.
While the Government has not yet decided to proceed with the process of privatising the State airline, the interest expressed by Texas Pacific raises the possibility of close involvement in Aer Lingus by a figure linked to its biggest rival.
A US-based spokesman for Texas Pacific declined to comment last night. Mr Bonderman owns only a very small but valuable share of Ryanair. With investments worth more than €7 billion, including the Burger King fast food chain, Texas Pacific specialises in the purchase of troubled companies which it then revives.
In addition to Ryanair, in which it once held a significant stake, the company's other Irish interests have included AerFi, the former Guinness Peat Aviation. An attempt last year to acquire Jefferson Smurfit Group was unsuccessful.
Because the Government has not yet appointed any corporate finance advisers to sell Aer Lingus, a discussion involving Texas Pacific is believed to have been only exploratory in nature. Advisers would be expected to engage in talks with a number of potential bidders.
While the Government has yet to clarify its stance to Aer Lingus on a possible sale this year, the process is unlikely to begin as long as war looms in Iraq.
It is also believed the Government is keen to finalise the new national pay agreement with trade unions before embarking on any privatisation process. After making day-to-day profits in excess of €45 million last year, Aer Lingus faces significant pressure on costs at the end of February when a pay freeze ends.
This has the potential to add some €34 million to the bottom line this year from March, eating into the airline's low profit margin.
Because of this pressure on costs, the airline and certain Cabinet members are believed to be keen to advance the sale process in advance of any other downturn.
Staff are expected to press for the 5.5 per cent pay rise due since October 2001 under the Programme for Prosperity and Fairness and the ending of a freeze on increments.
In return for work changes which have yet to be agreed, they are also expected to seek a 4 per cent increase due since last October. In addition, an industrial tribunal this week said pilots should be granted a separate 12.5 per cent increase under a previous award.
