Ireland's state-owned airline, Aer Lingus Group PLC, announced Tuesday it plans to net 470.3 million euros ($597.75 million) from its Sept. 27 initial public offering, a sale going ahead despite concerns that other recent airline offerings have fared poorly in a market worried about terrorism and fuel costs.

The Dublin-based airline -- which nearly went bankrupt in the wake of the Sept. 11 terrorist strikes in the United States but returned strongly to profit in recent years -- said the sale would be used primarily to buy both short- and long-haul aircraft as part of an aggressive, six-year expansion plan.

It said the government would retain a minimum 25.1 percent share in the company as expected, but would sell 72.7 million shares, while an additional 208.4 million shares would be created. The share price was set in a range of 2.10 euros to 2.70 euros ($2.67 to $3.43), with the exact price to be confirmed Sept. 27 when the shares go on sale.

Aer Lingus was expected to begin trading Oct. 2 on the stock exchanges in Dublin and London, the company said.

The share-price range will value the post-IPO company at 1.10 billion euros to 1.27 billion euros ($1.40 billion to $1.62 billion).

"We have made a good start to 2006 and we are well positioned for the future. We believe the capital-raising we are undertaking will allow the group to make the most of our opportunities and create value for shareholders," Chief Executive Dermot Mannion said in a statement.

Mannion and other Aer Lingus executives spent Tuesday in London making boardroom presentations to potential institutional investors.

The flotation will be open to institutions in the United States and Europe and to private investors in Britain and Ireland willing to invest a minimum of 10,000 euros ($12,700).

Analysts noted that other recent flotations of airlines over the past year -- involving German budget airline Air Berlin PLC, Slovakia's SkyEurope Holding AG and Air China Ltd. -- have fared poorly because of the sector's struggle to remain competitive in the face of increased fuel and security costs.

But Aer Lingus executives note that their airline is among Europe's few aviation success stories, thanks to its radical program of cutting staff, slashing fares and refocusing services since 2002 on European no-frills routes.

They argue that the company must hold an IPO to drum up enough capital to buy new aircraft, particularly long-haul Airbuses or Boeings that would permit new routes to the United States, South Africa, Middle East and Asia.

Aer Lingus currently links Ireland directly with the U.S. cities Boston, Chicago, New York and Los Angeles and Dubai in the Persian Gulf, but otherwise competes with no-frills leader Ryanair Holdings PLC on European short-haul routes.