Aer Lingus (EI, Dublin International) could see a decision concerning the sale of the Irish government's 25.11% stake in the airline being made in the coming weeks Ireland’s Minister for Transport, Tourism and Sport, Paschal Donohoe, has said.

The International Airlines Group (IAG) has been in extensive talks with the Irish government's Inter-Departmental Steering Group concerning its proposed acquisition of the stake, which would be valued at EUR341.4 million (USD368.8 million) under the IAG's offer of EUR2.55 (USD2.61) per share.

“There has been useful engagement on the issues by both sides. IAG has provided further details on the issues of concern to Government that were highlighted in my statement," he said.

Though the IAG had originally proposed a five-year long guarantee, Dublin has sought a longer term commitment from the Group regarding the future of Aer Lingus' twenty-three London Heathrow slots used to serve Belfast City, Dublin International, Shannon, and Cork.

"Discussions are progressing and as I have indicated previously I do not want this process to be drawn out unnecessarily and I expect that it can be brought to a conclusion in the coming weeks.”

While Etihad Airways (EY, Abu Dhabi International) president and CEO James Hogan has said his carrier would be willing to dispose of its 4.11% stake in Aer Lingus to the IAG, 29.82% shareholder Ryanair (FR, Dublin International) is now set to appeal a UK Competition and Markets Authority (CMA) announcement that it intends to uphold its original 2013 ruling that the budget carrier should cut its 29.82% stake in Aer Lingus to 5% or less.

The Irish LCC had requested a review of the ruling on the grounds that the CMA's March 2013 decision, which was premised on Ryanair's shareholding deterring other airlines from merging with or bidding for Aer Lingus, had now been rendered null and void by the IAG's latest proposal. It had also claimed the period of time that had elapsed since the original decision in 2013 constituted a “material change of circumstances”.

However, last week, the CMA issued its provisional decision dismissing both points of contention stating that there was neither a material change in circumstances nor any special reason not to implement the remedies set out previously.

"We have carefully considered submissions from Ryanair and others and taken into account all the relevant circumstances, including the fact that the IAG bid is conditional on receiving an irrevocable commitment from Ryanair. Having done so, our provisional view is that neither recent events nor the time that has passed since our final report are reasons not to implement the divestment remedy," Simon Polito, Chairman of the Ryanair/Aer Lingus inquiry group, said.

The CMA emphasized that as the two carriers are competitors, Ryanair's continued shareholding in Aer Lingus would not only constitute a significant hurdle to any potential merger, but may hinder Aer Lingus' ability to implement its own commercial strategy.

In its response, Ryanair dismissed the CMA's findings as 'manifestly wrong.'

“Given that the only basis for the CMA’s original divestment ruling was that Ryanair’s minority shareholding was or would prevent other airlines making an offer for Aer Lingus, the recent offers by IAG for Aer Lingus totally disprove and undermine the bogus theories and unsubstantiated evidence on which the CMA’s final report was based,” it said adding that it would petition the UK watchdog ahead of its final decision, expected later on in May.

Pending the outcome of the final report, Ryanair has also instructed its lawyers to begin preparations for a possible appeal to the UK supreme court.