The parent company of British Airways is preparing responses to a range of concerns raised in connection with its proposal to buy Aer Lingus.

The review group examining the International Airlines Group (IAG) takeover on behalf of the government has asked for clarity on a number of issues.

These include jobs, connectivity from Ireland and the lucrative Heathrow slots, according to the Irish Times.

The 25% stake held by government is not enough to block a takeover, unless it can get support from other shareholders.

Aer Lingus confirmed earlier this week that it had received the revised takeover bid from IAG, which valued each Aer Lingus share at €2.55 - or €1.3bn overall.

The government is to seek a meeting with IAG in relation to its bid.

The Taoiseach Enda Kenny has said no decision has been made about the future of Aer Lingus.

But unions have claimed that up to 1,200 jobs could be lost if the airline is sold to IAG.

The IMPACT trade union has warned the Oireachtas Transport Committee that IAG has a history of cutting jobs after takeovers.

Yesterday, Doha-based airline Qatar Airways bought a 9.99% stake in IAG, just days after the group made its third bid for Aer Lingus.