Irish airlines might join forces to create new European giant

Stobart Air and CityJet are exploring a tie-up in a move that could create one of Europe's biggest regional airline groups. The deal would be dependent on the final outcome of a sales process for Stobart Air, however. Stobart Air, which operates the Aer Lingus Regional service, is currently up for sale, with bids likely to value it at between E60m and E65m. Stobart Air management, led by CE Sean Brogan, have tabled a bid to buy the airline as the battle for control heats up. It's likely that such a bid could receive support from Aer Lingus, for instance, which also has a stake in a company that leases aircraft to Stobart Air. The Stobart Air sales process began last year, after shareholder Invesco Perpetual indicated that it wanted to exit its involvement in the business. <br/>