10-20 year plan my hat.
a 3 yr plan is I think the stark reality
From Bloxham broker report today...
• Weekend media reports suggest Aer Lingus is close to a “huge” cost-cutting package which
will probably be released when the new CEO takes up office in early September. The article
identifies financing pressures as one of the factors behind the plan as banks are reluctant to
finance aircraft with the airline.
• Aer Lingus needs to respond aggressively to a rapid deterioration in its operating
environment and the prospect of heavy financial losses in both 2009 and 2010. Recent
reports cited comments from the group Chairman that costs of at least €130m had to be
removed from the company, implying about 13% of ex-fuel costs. Even that level of cost
reduction would leave an operating loss in 2009, which underscores the urgency for change.
Aer Lingus reports interim results on August 27th.