DUBLIN: Ireland and IAG's Irish airline Aer Lingus are engaged in discussions about the government providing further financial support for the former flag carrier, Deputy Prime Minister Leo Varadkar said on Thursday.

Ireland's sovereign wealth fund said earlier this month that it had provided a 150 million euro ($181.2 million) three-year loan to the airline that is also a recipient of the state's wage subsidy scheme for firms hit by the COVID-19 pandemic.

"To say very clearly, Aer Lingus will not be allowed to fail. It is already receiving substantial financial support from government. Discussions are underway on further support for the company so it is there when we need it again," Varadkar told parliament.