Aer Lingus lost €87m last year, and are heading for bankruptcy if something does not give. All other parts of the airline have agreed their cost cutting plans.
Could you please explain how Aer Lingus are heading for bankruptcy. Having analysed the full year results, the Operating Loss for the full year was actually €81 million. Aer Lingus possess a significant amount of liquid assets that could be utilised to generate Cash Flow in the event of a Cash Flow emergency.
A profit was actually recorded during Q2, 2009. The outflow of cash in the past 18 months has been exacerbated by over €200 million because of Capital Expenditure in relation to new A330 aircraft, along with the once off severance deal that cost €96-€97 million.
The rate of cash burn has stabilisied significantly in the past six months.