The Irish government has accepted the International Airlines Group's (IAG) offer of EUR2.55 per share in Aer Lingus (EI, Dublin International) (or EUR1.36 billion in total) in return for various concessions and guarantees. Though it will retain 1 share, Dublin will receive a total of EUR335 million (USD364.64 million) for its 25.11% stake in the Irish national carrier.

As noted during the IAG's original pitch earlier in the year, it is conditional on not less than 90% of AERL Holding Limited shareholders consenting to the offer in addition to Ryanair (FR, Dublin International) accepting to divest its 29.82% stake to IAG.

Ryanair has said it would consider the IAG's proposal once it had received a formal offer document.

Insofar as its guarantees are concerned, the IAG said in a statement that post-acquisition, Aer Lingus would retain its twenty-three existing landing and take-off slots at London Heathrow wherein they will be used to operate daily winter and summer scheduled frequencies to Dublin International, Cork and Shannon for at least seven years. Aer Lingus' other Heathrow slots, during the first five years of its new partnership with the IAG, will be used for routes to/from airports in Ireland.

Continued connectivity for Shannon and Cork will also be guaranteed through flights to Amsterdam Schiphol, Paris CDG, and London Heathrow. A review of British Airways' current London City-Shannon-New York JFK business service will also be undertaken in order to accommodate passengers boarding in Shannon.

Under the IAG's ownership, Aer Lingus is set to open up two new transatlantic routes next year with an additional two to follow by 2020. As such, Aer Lingus will join the American Airlines (AA, Dallas/Fort Worth), British Airways (BA, London Heathrow), and Finnair (AY, Helsinki Vantaa) North Atlantic Joint Business venture in addition to rejoining Oneworld.

"The IAG Board believes that the acquisition of Aer Lingus has a compelling strategic rationale for the IAG Group at an attractive price for Aer Lingus Shareholders," the Group said. "The Acquisition is expected to provide substantial benefits to both IAG and Aer Lingus customers through an enhanced network, particularly to North America, using Dublin as a natural gateway hub for transatlantic routes."

With Aer Lingus' Dublin hub providing additional feed from the Irish market into the IAG's existing London Hetahrow and Madrid Barajas hubs, so the Group also expects a knock on effect in the freight sector with Aer Lingus’ cargo capacity to have increased by 50% come 2020.

In order to retain its identity, Aer Lingus will continue to operate all of its scheduled international flights under the Aer Lingus name and brand while maintaining its head office and place of incorporation in Ireland.

To placate union concerns over possible job cuts, the IAG and Aer Lingus estimate that by the beginning of 2017, 150 new positions will be added while by 2020 that figure is expected to reach 635 overall.