19/09/2001

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.

Fine Gael TD Jim Higgins has asked the Minister for Public Enterprise, Mary O’Rourke, to call a special meeting to discuss the problems facing Aer Lingus and to step in and help the company as it copes with the uncertain economical climate.

The events surrounding the beleaguered airline are a small indication of the worldwide slump in airline prices and shares.

In the United Kingdom, shares in British Airways fell 3 per cent amid worries about how it will cope with the global airline crisis. Virgin Atlantic announced 1,200 jobs were to go as the carrier cut back on transatlantic flights.

Meanwhile, aeroplane manufacturer Boeing has announced that it is set to cut 30,000 jobs.

In the United States following the terrorist attacks, airline and aerospace companies have come off the worst with Continental, Delta, and United Airlines all lining up to issue profit warnings, announce jobs losses and flight cutbacks. (AMcE)

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