The board of Aer Lingus has recommended accepting a €1.3 billion takeover bid from IAG group.

In a statement to the stock exchange this morning the company says IAG intends to operate Aer Lingus as a separate business with its own brand, management and operations.

The offer will need the approval of Ryanair and the government which hold a 29% and a 25% stake in the airline.

The Cabinet will discuss the issue at its weekly meeting this morning. Transport minister Pascal Donohoe will brief his colleagues on the finer points of the deal.

It comes as trade unions warn the Government to block any agreement until it secures guarantees about the future of jobs and routes in Ireland.

This mornings statement from the board of Aer Lingus says if successful the airline will continue to provide connectivity to Ireland, while benefitting from the scale of being part of the larger IAG group.