Transport Minister Paschal Donohoe has threatened to kill the Aer Lingus takeover "one way or the other" within weeks in a clear warning to IAG boss Willie Walsh that a deal must be struck soon.

The minister issued the ultimatum that the protracted takeover saga must be concluded successfully or rejected once and for all in an exclusive interview with the Sunday Independent.

"This is a matter I believe in the interests of everyone that should be wrapped up and concluded upon in the coming weeks," Mr Donohoe said.

When pressed for clarity as to how many weeks he had in mind, Mr Donohoe stressed: "I am talking in the coming weeks."

Senior Government sources last night said it could be closer to five weeks than three, but it is clear the process will not be allowed to drag on for months.

Mr Donohoe said it is up to IAG to deliver an improved offer quickly and that he is open to such an offer, but if this fails to materialise, then the process will be ended.

"The Government made very clear its decision," he added. "We would remain open for a further bid from IAG, if it was an improved bid. It is now important that if a further decision is to be made by me and by Cabinet, that one way or the other this matter is dealt within the coming weeks."

Mr Donohoe stressed: "It is important. I want to make clear, across the coming weeks, this matter is dealt with. We have evaluated this calmly. I do believe it is now in the interests of everyone that this phase of the process be dealt with."

The Sunday Independent was speaking to Mr Donohoe on Friday afternoon just after IAG boss Willie Walsh and Aer Lingus management met unions.

Speaking in Dublin, Mr Walsh indicated there was no major time pressure from his perspective to do a deal, but Mr Donohoe has clearly stated he is not prepared to allow the matter to drag on indefinitely. Mr Walsh also said he is unwilling to offer a longer guarantee for the use of landing slots into Heathrow Airport from Ireland than the five-year period already rejected by Mr Donohoe.

Despite earlier opposition to the takeover bid, there has been a significant shift in opinion within Government towards selling Aer Lingus in recent weeks. And Mr Donohoe said he remains very much open to an improved bid. Since the Government's decision to reject the third IAG bid for Aer Lingus, worth an estimated €1.4bn, Mr Donohoe's officials have met Mr Walsh's colleagues to see if progress is possible.

"But I want to reiterate, five years, as it stands, is not satisfactory for the Government," he said. "In the aftermath of that, we received further contact from IAG. Officials within my department had a meeting this week. We met them on Wednesday late afternoon, and in that meeting we reiterated our rationale behind our then decision."

Further meetings between the parties are due to take place later this week with Government sources likely to accept a guarantee on the Heathrow slots of between seven and eight years. Mr Donohoe rejected assertions that the previous offer was rejected because of the looming General Election, which sparked a wave of opposition from the Government backbenches.

"I never focused in on this being a bad deal because of the time of it. I simply focused on whether it was a good deal or not. I was very consistent in outlining how I would evaluate the bid and I stayed constant on that over the past number of months. In relation to the length of a guarantee, that is a matter for IAG regarding any commitment they make for any period longer than five years," he said.

But he stressed he remains open to an improved offer. "We are very clear in how we will analyse the bid. If IAG want to make further contact in terms of strengthened bid, we are open to that. We met them on Wednesday. I expect we will have a further meeting with them next week to make clear our views in relation to their last bid and any further bid."

Mr Donohoe said the decision of the board of Aer Lingus to support the bid is "an important input" in his decision making. But he warned: "I have to be focused on what is best for the country overall."

When asked to clarify what other barriers remain, Mr Donohoe said the offer must include specific guarantees of connectivity to all Irish airports and not just "between Ireland and the UK".

He added: "It is not enough to say you would maintain access between Ireland and the UK, because that could all be delivered through Dublin. The access that Cork and Shannon have must be maintained."

Sunday Independent

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