Aer Lingus (EI, Dublin International) has given its consent to CityJet's proposed takeover of Stobart Air (Dublin International) reports in the Irish press have claimed.

According to the Irish Independent, the total transaction is valued at up to EUR80 million (USD88 million) and will see CityJet's backers secure majority ownership of Propius Holdings, a Cayman Islands-based lessor which owns and leases aircraft out to Stobart Air. Stobart Air in turn operates Aer Lingus Regional flights for and on behalf of the Irish national carrier.

The report claims Propius, which is one-third owned by Stobart Air with the remainder controlled by Aer Lingus, has been valued at between EUR60-65 million (USD66-72 million). As such, CityJet (WX, Dublin International) would pay an estimated EUR15 million (USD16.5 million) for Stobart Air.

The deal could be closed as early as next month thus paving the way for the creation of one of Europe's largest regional operators.

Aside from Stobart Group and Invesco Perpetual with a 45% and a 40% stake respectively, Stobart Air's other shareholders include Cenkos Securities (10%) and Aer Arann Regional founder Padraig O'Ceidigh (5%).