The chief executive of International Consolidated Airlines Group (IAG), Willie Walsh will face tough questioning when he appears before an Oireachtas committee to discuss his company's €1.36bn bid for Aer Lingus.

The Oireachtas Joint Committee on Transport and Communications' chairman, John O’Mahony has confirmed that Mr Walsh will appear before the group on Thursday.

Aer Lingus share prices fell yesterday amid speculation that the deal was off - Bloomberg has since reported that IAG would consider offering more robust commitments to the Government to convince it to back the proposed takeover.

These include guarantees regarding landing slots at Heathrow, and the maintaining of the Aer Lingus name.

Based on recent deals it has been estimated that the London slots are worth €1.2bn.

A number of the Oireachtas Committee's members have previously opposed the deal.

Mr Walsh will set out the group's plans for the company - these are likely to include growing Aer Lingus's long-haul business through tie-ins with IAG's other carriers.