Last night, the Government has effectively rejected IAG's bid for its share in Aer Lingus.

However, Transport Minister Paschal Donohoe has left the door open for a fresh offer to be made with better guarantees on jobs and Heathrow slots.

He says a guarantee from IAG on the future of the Heathrow slots must be extended beyond five years - something the airline group has previously ruled out.

This morning, Ivan and Chris discussed the options that would be available to the government.

Ivan stated that there were three possible outcomes:

1. The Government could get into talks directly to sell their stake and they maybe do a deal on net jobs.

2. IAG say no and won't tweak the offer and may consummate a deal with Ryanair.

3. The final option is the nuclear option, IAG will walk away.

On the final option, Ivan said: "It is a desperate reflection if that happens on our political state of play. Are seven Labour TDs who have pretty localised interests going to dictate over Ireland corporate best interests?"

They also spoke about the surrogacy law. Chris stated there would be an all-out ban on commercial surrogacy. 

The issue, he continued, is "Who is the mother of the child? The answer can be both because in the instance of a surrogate if the agreement is there that the surrogate is carrying a baby on behalf of the couple and she gives over the parentage of that baby after the birth. What if it's an instance whereby a woman's womb is viable but her egg isn't?"

Newstalk Breakfast will be speaking to Leo Varadkar after 8am about the issue.