The Government is the "guardian of the public interest" and has to take into account much wider considerations that just the potential value of the Government's shareholding in Aer Lingus, Taoiseach Enda Kenny has said.

He confirmed no decision has been made about the offer for the sale of the national airline in the wake of the offer from IAG (International Consolidated Airline Group) which owns British Airways, along with Spanish airlines Iberia and Vueling.

He told Fianna Fáil leader Micheál Martin that Minister for Transport Paschal Donohoe had made no recommendation to Cabinet on the potential sale of the airline.

The Minister briefed the Government at its weekly Cabinet meeting. He set up an interdepartmental group and would appoint economic, legal and strategic advisers.

Mr Kenny said the advisers “will be announced tomorrow when the tenders have been finalised and allocated”.

This is the third bid made for the national airline in which the Government has a 25.1 per cent shareholding. Ryanair holds 29.8 per cent. The Dáil must approve any sale of the State’s share.

The Taoiseach said “the discussions now underway will continue for some time. So the offer is not yet formal and if you like Aer Lingus is now in a position where there’s an offer period to be reflected upon”.

He said “everybody understands the importance of this to our country, to our economy to our people in terms of access, connectivity, regional implications, beyond the valuation to be put on the airline”.

Mr Kenny added that the State was only one component of the make-up of Aer Lingus now “because of the fact that your own party privatised Aer Lingus over 10 years ago. That was a matter of exceptional public interest then as is the situation now.”

Mr Martin replied that “since then significant change took place to the benefit of the airline and it turned around from being in a perilous position to actually being a very successful airline which has added significantly to our connectivity and to overall economic performance”.

The Fianna Fáil leader, who raised the issue recommended against the sale and said it was an issue of “fundamental concern” about connectivity to the wider world and “particularly the very valuable Heathrow slots that Aer Lingus have”.

There were major implications for Cork, Shannon and Knock airports and serious concerns that up to 1,200 jobs could be lost of the sale was to go ahead

The Cork South-Central TD said the Dublin-London route is the third busiest route in the world and the busiest in Europe.

Mr Kenny said “I have to be very careful of what I say here Deputy Martin” and he stressed that “the Government has the guardian of the public interest has to take into account the wider implications”. No decision had been made and now was a period to reflect.

Sinn Féin leader Gerry Adams echoed Mr Martin's view that the sale should not be approved.

The sale could not go ahead without the Government’s agreement he said. “You do have the authority and the responsibility to block it and build upon the work that has been done in Aer Lingus and expand it,’’ said Mr Adams.

Mr Kenny said the stock market rules meant he was not in a position to say anything other than the Government would take into account all relevant issues and the public interest.

Mr Adams said the Taoiseach had a mandate from the people and not the stock market. He added the company was profitable because of the efforts of the workforce.

The airline, said Mr Adams, employed 3,900 people and there were huge fears that a sell-off would have a negative affect for employees in Dublin, Shannon and Cork airports.