Following discussions the Irish government which has a 25% stake in Aer Lingus, has now decided to sell to British Airways owner IAG.
Ryanair which owns a 29.8% stake in Aer Lingus reported earlier this week: "The board of Ryanair has yet to receive any offer, and will consider any offer on its merits, if and when an offer is made."
The takeover concerned Irish MPs regarding services between Irish airports and London’s Heathrow, however the deal agreed with IAG has confirmed a legally binding commitment to maintain current services.
Colm Barrington, chairman of Are Lingus, said: "This is a compelling transaction for Aer Lingus, its shareholders, its employees, its customers and for Ireland.
"The company will reap the commercial and strategic benefits of being part of the much larger and globally diverse IAG Group."
The deal has also suggested that nothing will change, such as Aer Lingus will keep its registered name and its head office will stay put in the Republic of Ireland.
Chief executive of IAG, Willie Walsh commented: "Aer Lingus would maintain control of its brand and operation while gaining strength as part of a profitable and sustainable airline group in an industry that's consolidating. Ireland's vital air links to Europe and North America would be enhanced, creating new jobs, with cast-iron guarantees on ownership of Aer Lingus' Heathrow slots."
Approval is still required by the Irish parliament.
