Etihad Airways (EY, Abu Dhabi International) has agreed to sell its 4.99% stake in Aer Lingus (EI, Dublin International), its Chief Executive Officer James Hogan has announced. In March, Hogan said the sale would go ahead should the International Airlines Group (IAG) succeed in its latest bid to assume control of the airline.

The Irish government last month agreed to sell its 25.11% shareholding in Aer Lingus after the IAG agreed to additional guarantees over the future of Aer Lingus' coveted London Heathrow slots.

However, the IAG's offer is dependent on Aer Lingus' other major shareholder, Ryanair (FR, Dublin International), agreeing to dispose of its 29.82% stake. Thus far, the budget carrier has yet to publicly comment on whether or not it will accept the IAG's offer of approximately EUR400 million.