Dubai: Etihad Airways could be positioning itself to take an influential stake in Aer Lingus after increasing its holding in the Irish carrier for the second time in two weeks on Tuesday.

The Abu Dhabi government owned carrier now holds 4.11 per cent, up from 2.99 per cent, after buying up 6 million shares over the past two weeks.

An Etihad spokesperson confirmed the equity stake increase but declined to comment on the carrier’s future plans for the Irish carrier

Keith Mcmullan, managing partner at UK-based Aviation Strategy, said Etihad is positioning itself to potentially increase its holding. However, it will have little immediate effect with 4 per cent not giving it any management control.

A move to further lift its stake in the Irish carrier will increase its access to healthy routes in Europe and to the United States.

Like Abu Dhabi, Ireland’s Dublin and Shannon Airports offer US border preclearance facilities. This would benefit passengers travelling on any possible Etihad routes to the US via Ireland.

“Aer Lingus has implemented a successful restructure and is in fighting shape. It’s transatlantic and London Heathrow access is appealing. Aer Lingus also does not serve the east, so Etihad is a partner for Asia, Australia the Middle East and Africa,” stated Will Horton, senior analyst at CAPA – Centre for Aviation.

Etihad and Aer Lingus have an existing revenue sharing code-share agreement but now Etihad could now be waiting to scoop up shares owned by Irish budget carrier Ryanair. Ryanair lost an appeal earlier this month against an order to drop its stake of almost 30 per cent in Aer Lingus to no more than 5 per cent.

“Ownerships of Aer Lingus will be an evolving story due to Ryanair, and no doubt these are not Etihad’s last increases in Aer Lingus,” Horton stated.

Etihad’s raid on Aer Lingus shares follows the visit of Ireland’s Taoiseach (Prime Minister) Enda Kenny to its headquarters in Abu Dhabi in January.

During his visit Kenny bestowed a certificate of Irish descendancy to Etihad’s Australian-born chief executive James Hogan. The Irish government holds a 25 per cent stake in Aer Lingus.

Etihad’s code-share and “equity stake” partnership strategy delivered 1.8 million passengers to the airline last year.

Along with Aer Lingus, its equity partners include several European carriers as well as Air Seychelles, Jet Airways and Virgin Australia.