By Jonathan Davies

Irish airline Aer Lingus has said it is 'willing' to accept the €1.36bn (£1bn) takeover bid from the owner of British Airways, IAG.

But the airline said that IAG needs to "address the interests of relevant parties" before it formally accepts the offer.

Budget airline Ryanair and the Irish government both hold significant stakes in the airline. Ryanair owns a 29.8% stake and the Irish government hold 25%.

In a statement, Aer Lingus said: "The board has indicated to IAG that the financial terms are at a level at which it would be willing to recommend [the offer] subject to being satisfied with the manner in which IAG proposes to address the interests of relevant parties".

The Irish government is due to hold a cabinet meeting today (Tuesday) where the offer will be discussed.

A trade union which represents the majority of Aer Lingus staff has warned that as many as 1,200 jobs could be lost if the deal goes ahead.

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