Aer Lingus Link Up

Aer Lingus, the Irish national airline, has been instructed by the government to find a strategic partner by the year-end. Alan Dukes, minister for transport, energy and communications, said he had told the Aer Lingus board to "explore the possibilities of entering into a major strategic alliance, with or without the transfer of equity". However, Bernie Cahil, chairman, urged a more cautious approach late last week. He indicated that Aer Lingus should only embark on discussions from a position of strength and said all enterprises within the group should be on a sound financial footing before negotiations with a strategic partner opened. The company more than doubled pre-tax profits last year from Irish £40.9 million after an Irish £175 million government rescue which returned it to the black in 1995 for the first time in five years.