Etihad in talks with Aer Lingus over commercial partnership In a statement on Tuesday, Etihad said it had acquired a 2.987pc holding in Aer Lingus in order "to forge a commercial partnership." Etihad, the sponsor of Manchester City FC, has pledged not to raise its stake until talks over a codeshare are concluded. Analysts warned that Etihad would face severe difficulties if it tried to take a majority stake in Aer Lingus given European rules on foreign ownership of national airlines. The Irish carrier said: "Aer Lingus and Etihad are engaged in discussions, which to date have focused on reciprocal codeshare opportunities. Future discussions may explore additional commercial and cost opportunities to develop a closer working relationship in areas such as joint procurement. Michael O'Leary, chief executive of Ryanair, which owns a 30pc stake in Aer Lingus, warned it was "inevitable" the flagship carrier would be broken up if the government's holding was sold to Etihad. In the case of a break-up, Mr O'Leary said "some or all" of Aer Lingus's Heathrow slots would be "lost to Ireland."