An Interdepartmental Review Group comprised of senior public servants across a number of departments is understood to be close to finalising its report for the Government in relation to the possible sale of Aer Lingus.

Aer Lingus shares rose by 5 percent at one stage yesterday on rumours that a government decision on the sale of State’s 25.1 percent stake to International Airlines Group (IAG) was imminent.

The Transport Minister, Paschal Donohoe says he wants to draw the Aer Lingus takeover saga to a conclusion soon. He updated the Cabinet on discussions with the IAG and CEO Willie Walsh on Wednesday - but no decision was made.

The airline's share price has cooled since he clarified that the Government has not yet decided to sell its shares.

The interdepartmental report will consider whether the IAG bid valuation includes an appropriate valuation for the Aer Lingus slots at Heathrow and the veto mechanism which will hold these slots in Aer Lingus’s name in perpetuity.

The length of the guarantee as to the retention of existing services from Dublin, Shannon and Cork Airports to Heathrow has been the most contentious issue for the Government since IAG declared its interest in the airline. The Government wants a 10 year guarantee - IAG has offered five. Sources familiar with the negotiations suggest that a seven year guarantee could be agreed to as a compromise.

Assurances about terms and conditions (including pensions) for existing Aer Lingus workers; net job creation forecasts by IAG (IAG has already pledged 635 net new jobs but has said there will be some redundancies); and the new services that IAG will deliver from Dublin Airport and when these are likely to start operating will all be considered by the review group.

UK ruling

Britain's Competition and Markets Authority has this morning stuck to its ruling that Ryanair must reduce its holding in Aer Lingus from its current holding of 29.1 percent to a maximum of 5 percent.

Ryanair had appealed the ruling on the basis that the current IAG bid for Aer Lingus had changed the basis by which the original competition ruling had been made. Remains to be seen whether Ryanair will appeal this ruling further.

The Government's cabinet meeting on April 28th (Tuesday week) could be a key date in this process - it is likely that Fine Gael and Labour will seek clarity from Ryanair as to its intentions if it is to agree to sell the State’s shareholding.

Newstalk.com's business editor, Vincent Wall says that decision could come before the Aer Lingus AGM next month.

He told Breakfast that progress has been made on the connectivity issue.