DUBLIN (Reuters) - The Aer Lingus (>> Aer Lingus Group Plc) board reiterated its support for British Airways-owner IAG's (>> International Consolidated Airlines Grp) takeover approach on Friday, aiming to counter sceptics in Ireland by saying it would enhance Ireland's position as a hub for European travel.

IAG's 1.36 billion euro (1 billion pound) offer already had the qualified backing of Aer Lingus's board with a formal recommendation subject to the agreement of its two largest shareholders: budget airline Ryanair (>> Ryanair Holdings plc) and the Irish state.

With the government yet to be convinced on the merits of selling its 25 percent holding, particularly ahead of tough elections next year, Aer Lingus chairman Colm Barrington gave a long list of reasons why they should back it.

"The board's view is that a combination of AerLingus with IAG has a compelling strategic rationale and will deliver significant benefits for Aer Lingus, its employees, its customers and for Ireland," Barrington said in a statement, Aer Lingus's first since recommending the raised offer on Jan 27.

The statement provided more detail than its original recommendation, explaining that Ireland would become a central hub for connections, that the deal would accelerate Aer Lingus's planned transatlantic growth and lead to new employment.

The firming up of support came a day after IAG boss Willie Walsh did a series of media interviews in Dublin and appeared at a parliamentary committee to assure politicians his intentions were "completely positive".

Dubliner Walsh, who started his career as an Aer Lingus pilot, warned sceptical parliamentarians that Aer Lingus would struggle to survive if they did not accept IAG's bid.

Aer Lingus's shares, trading 13 percent below the IAG offer price of 2.55 euros on worries over the political opposition, were 2.2 percent lower on the day at 2.2 euros by 1600.

(Reporting by Sarah Young and Padraic Halpin)