08/10/2009

Aer Lingus Staff Await Jobs Briefing

Irish airline, Aer Lingus has told staff in Cork and Shannon they will be briefed later today on the "restructuring" plan that is expected to see almost 700 jobs cut.

The part state owned airline yesterday revealed plans to cut 676 jobs through voluntary redundancies by the end of 2011 due to their ongoing operating loss.

Trade unions have reacted angrily, describing the plan as "extreme and draconian".

But Aer Lingus bosses have said that if no deal is reached, the airline would be forced to close loss-making routes, sell aircraft and implement compulsory redundancies.

The airline is expected to lose up to €150 million this year and more than €100 million in 2010, as passenger numbers fall and fares contract.

Siptu said today it would consider the implications of the Aer Lingus Transformation Plan and was currently evaluating the company's statement to the stock exchange.

The unions National Industrial Secretary Gerry McCormack said: "Job cuts seem to be extreme and draconian and an over reaction to the current difficult economic climate.

"SIPTU will be calling a national meeting of its shop stewards early next week which will consider the union's response to the company’s proposals.

"These are not altogether clear and lack of detail at this stage means it is difficult to evaluate them. We will be seeking clarification from management ahead of the meeting of our shop stewards."

Meanwhile, Green Party Food Minister Trevor Sargent said he was gravely concerned at the news of the job losses.

Reacting to the news, the Dublin North TD said: "These job losses would be a severe blow to the families concerned and to the local economy.

"I understand that the airline will need to reduce its operating costs by up to €100 million to remain competitive and I hope that this can be achieved with the minimum of job losses. Let us hope that these can be achieved on a voluntary basis."

(DW/BMcC)

Related Northern Ireland Business News Stories
Click here for the latest headlines.

29 November 2001
Irish airport sector hit by further redundancies
It is thought that over 200 jobs are under threat at Dublin Airport following reports that Servisair has issued protective redundancy notices to workers at the site.
01 December 2008
Ryanair Flies Into Takeover Turbulence
There's a multi-million euro bid for Aer Lingus on the table today as budget airline Ryanair makes a fresh takeover offer. The all-cash offer would value Aer Lingus at €748m euros (£619m) a lot less than the previous offer for Aer Lingus, which valued it at €1.5 billion.
19 September 2001
Airline industry suffers in aftermath of US hijackings
Fine Gael has demanded a special debate in the Irish Parliament, the Daíl, to discuss the jobs crisis at Irish airline Aer Lingus. Around 1,600 jobs are to go at the airline after Aer Lingus announced a 25 per cent cut in its operations on Tuesday, in the wake of the hijacking disasters in America.
09 October 2001
Aer Lingus board meets to discuss rescue plan
The board of Aer Lingus was to meet on Tuesday to discuss the options for a rescue package for the beleaguered Irish airline. It is understood that high on the agenda for the October 9 meeting was the axing of hundreds of jobs, but there were hopes that the Irish government may be prepared to step in with an aid package.
31 August 2010
Examiner Appointed To Aer Arann
The High Court has appointed an Examiner for troubled airline, Aer Arann. Aer Arann said it intends to operate normally during the period of examinership and intends to fly all Aer Arann services and all Aer Lingus Regional services operated under the airline’s franchise agreement with Aer Lingus.