Transport Minister Martin Cullen and Aer Lingus chief executive, Dermot Mannion, are expected to reveal details of the State airline's initial public offering (IPO) this afternoon.

In addition to the planned floatation, it is also reported that the airline will soon commence talks with Boeing and Airbus to renew and expand its fleet that is expected to result in new orders for €2 billion worth of aircraft.

The aircraft orders will be funded in part by the proceeds of next month's planned initial public offering (IPO), which is expected to value Aer Lingus at between €700 million and €1 billion.

Aer Lingus is owned 85.1 per cent by the State and 14.9 per cent by it workers. It will seek a dual listing in Dublin and London.

The airline is expected to have an initial free float of at least 55 per cent with trading due to begin before the end of next month.

The Government has said that it is committed to retaining a stake of at least 25.1 per cent but could initially keep up to 33 per cent.

The employee share ownership trust, which holds 12.6 per cent of the company (other worker-owned shares are held individually), has been guaranteed that it will maintain its stake through a profit-sharing scheme.

Aer Lingus hopes to raise more than €500 million, which will be used to expand both its long-haul and short-haul networks.

The Government's delay in agreeing the privatisation means that September will be a choppier time for the floatation than compared with most of the last three years when stock markets were buoyant and the global economic outlook was bright.

Investors will be taking a punt that the Irish economy that is so dependent on the US economy, will remain strong. In addition, with a history of trade union militancy at the airline and Ryanair, one of the world's most successful airline on its doorstep, the floatation is far from a slam dunk.

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