The Irish government has accepted a cash offer from British Airways parent International Consolidated Airlines Group for its 25-percent stake in Aer Lingus, IAG announced Tuesday. However, the €1.4 billion offer remains subject to acceptance by 29.8-percent shareholder Ryanair, which has yet to indicate whether or not it will block the deal. In a nod to conditions placed on the sale by the government, IAG said it has agreed that Aer Lingus would retain all its existing slots at London Heathrow Airport. It also committed to maintaining Aer Lingus’s current daily winter and summer scheduled frequencies between London Heathrow and Dublin, Cork and Shannon for at least seven years after the acquisition.

In a statement issued Tuesday, IAG said Aer Lingus will operate all of its scheduled international air transport passenger services under the Aer Lingus brand, and maintain Aer Lingus as its registered name and its head office and place of incorporation in the Republic of Ireland.

It added that the acquisition carries “a compelling strategic and financial rationale for the IAG Group at an attractive price for Aer Lingus shareholders,” and that it would substantially benefit both IAG and Aer Lingus customers through an enhanced network, particularly to North America, using Dublin as a natural gateway hub for transatlantic routes.

“Aer Lingus, Ireland and IAG would all benefit from this deal,” said IAG chief executive Willie Walsh. “Aer Lingus would maintain control of its brand and operation while gaining strength as part of a profitable and sustainable airline group in an industry that's consolidating. Ireland’s vital air links to Europe and North America would be enhanced, creating new jobs, with cast-iron guarantees on ownership of Aer Lingus' Heathrow slots and their use on flights to Dublin, Cork and Shannon. Acquiring Aer Lingus would add a fourth competitive, cost effective airline to IAG, enabling us to develop our network using Dublin as a hub between the UK, continental Europe and North America, generating additional financial value for our shareholders.”