Aer Lingus has moved a step closer to approving a takeover from IAG.

Its directors have released a statement saying there is a "compelling commercial logic" to allowing IAG to buy the airline.

It says the takeover would help to create jobs, enhance Ireland's connectivity to the outside world, and develop Ireland as a hub for travel between Europe and America.

The airline's directors say they would favour the takeover being proposed by IAG, but they're not in a position to recommend it because a formal bid has not yet been made.

The Minister for Transport says IAG's proposal to buy Aer Lingus remains under consideration by the Government.

Speaking following the statement by Aer Lingus, the Minister for Transport Paschal Donohoe TD, said: “I have had an opportunity to meet with IAG and Aer Lingus this week to engage directly with them. I note the statement from Aer Lingus this afternoon and the matter remains under consideration by Government.”