Aer Lingus resignations

[akerosid]

Bertie, you useless, dithering, , obfuscating, obstructing prat.

It's Bertie's doing; there's absolutely no point in criticising EI's management. Their role was to turn around and grow the airline and this they did as best they could. Sure, there were industrial relations problems (and I'm surprised that the whole 146 pilot debacle is still alive), but it's because tough decisions were made BY AER LINGUS that it's in the position it is today.

Has anyone noticed, incidentally, that announcement by the govt official (and now Bertie) that a decision would be made by Christmas ONLY CAME ABOUT AFTER THE RESIGNATIONS? Up to then, it was the old "in a matter of weeks' and "in the fullness of time". Is it any wonder the trio were exasperated?

And what if our new socialist leader decides he wants to invest govt money in EI; how is Mary Harney (whose new Health dept is expected to get big increases) react to this? It's bad economics. It is really difficult to find a good side to this and worse still, Goldman Sachs predicted something like this happening; surely Bertie could have seen it coming, but no, Bertie was too busy tugging the forelock to his union bosses, sorry Social Partners.

I have completely lost faith in Bertie; let him join the UN or some body where being the "hail fellow well met" will work. He has a lot of qualities in bringing people together (as evidenced by the EU Constitution talks last June), but this kind of business, where quick decisions are made, are clearly not his forte. GO!

[Tom the Tenor]

Harney was on the 1 O'Clock radio news. There is no way she as Minister for Health will allow public money to be spent on aeroplanes when the money could be used for more hospital beds, A & E etc. Pat Rabbitte is saying Bertie is well into the process of trying to cut deals with independant TDs for when the FF/PD alliance eventually collapses.

What a farce today - the Taoiseach, Bertie Aherne tearing stripes in his gutty boy accent out of Walsh in the Dail and just before that the Tanaiste or deputy prime minister, Mary Harney singing Walsh's praises up to the hilt in radio and TV interviews.

Crikey, is there any doubt now that aviation stinks so much in Ireland? The Shannon stopover lobby are rubbing their hands with glee today along with the smug union types in EI and in the former Aer Rianta and as for lots of new services to North America you can kiss goodbye to all that for a long, long time.

[Idunno]

Yes I just heard Berties comments. Seems like the bridges have been burned now. If Willy was expecting Bumbling Bertie to beg him to stay and handing him another carte blanche...he miscalculated.

Bertie actually made a few good points in his speech though. Walsh made a major faux pas in angling for the MBO...he left himself open to all the accusations of profiteering that are now raining down on him.

His position has now become seriously untenable...I predict he resigns in the next few hours.

And I also predict this is all going to rock this government to the core...I can see the PDs bailing out after a major row.

[Bearcat]

AL i dont think wont go down the tubes as predicted nor will it return to the bad old days of champagne and medals, but what a mess......Willy went for the ultimate brinkmanship with Bertie left fuming to be put on the spot. This could bring down the Irish goverment as Berties partners the PD's want private investment to fund the required fleet upgrade. I have never seen Bertie so personal before and with Willys plans of staying on to see what ever happens now shelved from what Berie has said.....the lock on his door has probably been changed.....this is nasty times for WW who has been accused of being a one trick pony in that he and the hench men were only good at stripping but were they good at working with the plan.?...unfortunetly they never fully saw it through...... WW played hardball with the Berty teflon and its got very nasty.....WW probably did the best thing ever by doing what he did as there now is an end result closer for the long term prospects of AL. I genuinely believe WW loves AL and its potential upswing but he sure rattled the govt. If AL dont replace their long haul fleet they are knackered. I am sure WW and the boys had a deal done of immense proportions with Airbus/Boeing but couldnt finance it as they were stopped from bringing in outside sources which probably left them look like a bunch of boofons....hence their sheer frustration...
I am sure Mick O'Leary is writing/ sketching his as we speak to go into the national press congratulating the biggest didderer for screwing it up again.....Bertie by having his thumb in his bum in relation to the aviaition sector has I think really blown it. He has shown that he is a union sop, believes he needs their vote to the loss of progress in AL. Please Mick if your reading this put an a full page add in slating Bertie.

[DW11]

I predict he resigns in the next few hours.

Eh, didn't he resign yesterday, or was that all a really slick joke that went over my head.

[akerosid]

Bertie may have been fuming at being forced to make a decision, the one thing he hates to do, but what choice did Willie have. I have long reached the conclusion (and I think many others have) is that the only way this govt will make a decision on aviation issues is if they are driven to it and that's what the MBO proposal was all about.

Did anyone notice, for example, that before the announcement, there was no indication as to when a decision might be made on the future of EI - it was originally supposed to be Sept/Oct and now, only because the govt was pushed into making a decision, we hear it should be made by Christmas. That's the kind of thing I'm talking about. The sharp application of pitchfork to buttocks is the only way Bertie or the govt will move.

I have to say I'm heartened by Harney's approach. I didn't hear her (although I'll be listening to the 6.30 news), but I think this is an issue where the PDs need to give FF a good clout around the chops with a wet fish. If the govt falls, so be it. We can't have Ahern constantly getting in the way.

[hobie]

"Ireland will probably turn to the markets to secure funding for Aer Lingus, the country's transport minister said on Wednesday, promising a fast decision after three senior executives resigned from the state airline."

http://news.airwise.com/stories/2004/11/1100683988.html

[Idunno]

Eh, didn't he resign yesterday, or was that all a really slick joke that went over my head.

Sorry...what I obviously meant was - LEAVE!

I've been hearing various other snippets about this fiasco.

Apparently his contract expires this month and he was (no doubt) looking for a serious hike in his remuneration. Who could blame him with the latest rumours circulating about the generous kiss offs that some breifly employed Aer Rianta directors received recently (I know we all hate links, but you MUST read THIS to see what I mean).

Anyhow, perhaps he was being given the cold shoulder on the dosh. Yet another incentive to go.

I'm aware also that this 6 months notice thing is part of his contract, so he can't just walk as I expected...but I think there'll be mounting pressure for him to go as this sinks in and festers. He's now a lame duck CEO - the unions will laugh at him for the remainder of his term, and everything he does or says from this on will just serve to widen the cracks between the PDs and FF.

As a colleague said to me today...Willy has been used to bullying and intimidating his employees now for several years, putting on his best MOL impression.
While it may have worked on the staff, he made a critical misjudgement in trying to do it with the politicians.

Look on the bright side...it probably means MOLs second terminal plans are f***ed for ever more if Bertie keeps this up.

[Shamjet]

Walsh true to form has thrown his toys out of the pram in a sulk.

As has been said above he was a crisis manager, pure and simple.
A bullie, who trimmed the company down to the bone at cost mainly to staff. He did a great job in this regard.. but with soaring profits and image he could not / would not compromise with staff on any issue to bring the company over the next hurdle.
The LRC do not appreciate bullies for the sake of being bullies. nor do they appreciate their rulings being continually ignored and questioned.
That all irellevent now...
What an fantastic prospect for an amibitious new chief executive team.
Perfect for any CEO who understands the importance of staff co-operation to take the company further.
Irony is a more understanding comunicative CEO will probabley achieve all the same concessions from the work-force by just appearing friendlier and focused on the same objective.
Walsh is gone , thank you and goodnight.
His pitt-bull Kearney is absolutely no loss at all.

Crisis management the only real option. Irish rail, an post ....

The ambitious airline boards of the world must be thanking their lucky stars they did not swoop for the three boyos , now that its clear they really would have made a drama out of a strong prospect.

The future....
Hangs in the balance.. i'd have to agree, Bertie now must make the careful decision he's paid for and holds office for....

We'll wait and see..

Best of luck to all who have sacrificed so much for the shamrock and didn't get out while they had the chance.

SJ

[Tom the Tenor]

One thing is for sure, the events of the last three days have triggered the beginning of the end of the current Fianna Fail/Progressive Democrat government. The PDs will not walk away straight away as the ministerial penions/TD pensions are not yet secure but once they are they will go before the next election, no doubt about that now.

No doubt also that Willy Walsh is a lame duck CEO and will have no credibility in the eyes of the Aer Lingus unions or the Fianna Fail gang of north County Dublin. Aer Lingus are going to have big problems ahead. A number of people have been offered the chairmanship of the company but they have all turned it down! It will not be easy to entice a good CEO from private industry so the appointment may come from within. If so, costs may easily get out of control again? Also, the life span of EI CEOs is not exactly long either.

Interesting times ahead all around!

[Idunno]

A number of people have been offered the chairmanship of the company but they have all turned it down!

Tom, wait a second!

You are talking about the Chairmanship of a company that is one of the few state airlines in Europe to be profitable, and quite spectacularly so.

You are talking about a job that carries a lot of appeal in that anyone in upper airline management has numerous goodies handed to them as part of the package - like free first class travel worldwide, for life, on any airline - not to mention a large salary, large golden handshake, and large pension.

You are talking about a post that is not that demanding, as all it requires is someone to 'lead the board' and leave the day to day running to the CEO.

Its actually a PART TIME JOB.

A nice little earner.

Yet, as you say...nobody wants it!?

WHY?

There is only one logical reason for that in my view...and that reason is none other than WALSH and his 'team'.

I strongly suspect that any leading light who has been quietly offerred the post just picks up the phone and asks around in his circle of high flying 'Chairmen of the Boards'.

My guess is that his friends remind him that the real power will be Willy, and that he may spend his time as an impotent figurehead in a company constantly at war with itself and dominated by an egotistical martinette and left dangling by a bungling government.

Not a pleasant prospect for anyone who really doesn't need the job, or the hassle.

You suggest a potential Chairman makes his negative decision based on Union problems?
Nonsense! The Unions at Aer Lingus are toothless now, all but broken by Walsh...SIPTU is disappearing up its own jacksie and IMPACT are far from being a militant marxist group.
More like 'men in suits'.

As you point out...the lifespan of Aer Lingus Chairmen...AND CEOs is not that long. Look into WHY that is, and you see a history of in house dirty tricks, management shennanigans and hints of corruption in high places!

You look at Aer Lingus' troubles and you see UNIONS. Thats your choice.
I look at Aer Lingus' troubles and I see a history of bad management...including Walsh.

Any bets that as soon as Walsh is out of the picture there'll be no difficulty in getting a Chairman and CEO?

[Tom the Tenor]

Sure, when Walsh leaves it may be easier to appoint a new chairman and a new CEO and I hope they are up to the job but I wonder.

There is no doubt that Aer Lingus has had weak and bad management in the past, the Aer Lingus of all chiefs and no indians, the Aer Lingus of high fares and the Aer Lingus of the sheepskin coat brigade - the IR£130 cheapest fares of ORK-LHR in the early 1980s with so many restrictions. How blessed we were! Today you can get a day return ORK-LHR for about 50 to 60 Euro including taxes!

How long will that last now? The clock may have been put back by years?

The Shannon stopover is the greatest aviation dirty trick there is at present in Irish aviation and Walsh's going has in it's own little way only helped to reinforce that position. Maybe not permanently but certainly for a fair while yet?

[CaptJ]

There is no doubt that the Shannon stopover has been one of the most successful protectionist measures in aviation, ever.

For Shannon that is. For everyone else in Ireland it has been a disaster.

As for Union Bashing. Bash away. The unions have aquiesed to massive job losses, to what avail? Aer Lingus is now exposed to the vagaries of the market because a cabal of senior managers didn't get their way.
Bertie may be wrong, but WW & Co were only self interested.

[MarkD]

My problem with SNN is not the stopover, it's that there is no attempt to create feed into SNN. Incentives for shorthaul airlines to do LDY, BFS/BHD, even CWL/SWS for west bound traffic connections should be in place, but everything is funnelled to DUB and hits a bottleneck because you can't have DUB service without SNN service. Since SNN is essentially depending on local feed this lessens the incentive to serve it separately, except by US Airways this year.

Also it's a pity that Skynet did not try SNN-AMS direct with a KLM codeshare and get SNN away from EI's LHR monopoly.

I would like to see EI or others try A319/A319LR/757 service to SNN and A330/767/777 service to DUB, which as I understand it is perfectly legal but am open to correction. Long range A319 services have been part of Air Canada's growth strategy and should be considered by WW's successor.

[akerosid]

I agree with your first point wholeheartedly, CaptJ, but not with your second.

Unfortunately, what Ahern seems to be missing is that EI is not in a vacuum; it is very much in the market. One of the luckiest factors in EI's recovery was that O'Leary had his long running spat with Aer Rianta. Can you imagine how much more difficult it would have been for EI if FR had expanded in DUB as much as it had done elsewhere? Very much moreso, if not impossible.

Now, with FR getting pally with the new DUB Airport Authority, how long will it be before it does expand significantly in DUB. As far as EI has gone, it's still well behind FR in the cost cutting stakes. I really hope it doesn't go down to FR's level of cost cutting, but like WW or not, the fact is that cuts had to be made. I don't like the fact that you can't interline on EI flights anymore (within Europe anyway), but there's a significant cost attached to that. I DO like the fact that EI has expanded significantly.

My fear is that if EI takes its eye off the ball in the costs battle, EI could suffer significantly at the hands of FR. This is a very real battle and I really don't think Ahern wanted to understand it.

Unfortunately, he has blocked every other avenue of growth; there can be no new growth on t/a routes (although the EU has more to do with that), there is no outside investment and until that happens, no decision on a new fleet. Is it any wonder that WW and co. felt they had done as much as they could.

[MarkD]

akerosid

Think blaming the EU for the T/A mess is missing the target. If the Govt wanted the stopover gone it would be gone.

[akerosid]

You are correct in that if they did want it gone, it would be long gone - and should be, BUT unfortunately, the govt cannot conclude negotiations with the US on this matter while EU/US negotiations are ongoing. I asked a TD to table this question explicitly a few weeks back. Regulation 847/04 deals with this issue and the govt would have to seek and obtain permission from the EU. Unfortunately, the EU has not given this consent, so basically we're stymied until a deal is done.

However, I have also suggested that since the EU will also be opening negotiations with Canada, we should pre-empt this by reviewing our bilateral with Canada, which is extremely restrictive and counter productive. Of course, no response and no interest.

This is why I believe that if any action is to take place, it has to be done with the aid of a pitchfork. The only way the govt will move on any aviation issue is if it is forced to do so, not that it wants to.

[Idunno]

Wunnerful Willy has sat back and watched competitor airlines move in on routes we should be doing.

For instance:

South Africa - Toolin Travel - (a travel agent 'fer chrissake!!) - launched on the route and is on its second succesful year. Willy faffed around last Winter, hinting he was planning a service, then pulling back and blaming THE STAFF for its demise. What utter crapology!

Dubai: Its a route that is just CRYING OUT for a service, yet we are still pissing about while Emirates gets more serious about doing it with every day that passes.

Orlando: YES I KNOW we are starting the route this Winter, but WHY weren't we in there all Summer? We've been wasting an aircraft on Baltimore instead of going where the folks wanna go...Florida.

The 'Charter Operation' angle is being used to get around the bilateral for Orlando. Why can't that be done with other routes?

I remember Willy telling us back in 2001 that we have too many eggs in one basket by concentrating ALL our long haul interests in the US, and that he would be looking East for future long haul growth.

WHERE IS IT???

The EU/US bilateral is not the beginning and end of this.
Willys lack of real vision is the problem.

He'd rather fight with the staff over the price of a ham sandwich than go out and attack the market.

[MarkD]

Farting around with BWI because:

1 - It has "Washington" after its name but without the paranoia that surrounds flying into IAD and DCA.

2 - I seem to remember an Oirish mayor of Baltimore when Mary Mac went visiting.

[Idunno]

Mark if you think those are good reasons for an airline to fritter away its resources, its as well you aren't running ALT.

Does Mick O'Leary fly into Montpellier because there's a French-Irish 'monsieur le maire'?
Like hell...he goes where the business is.

My neighbours and their kids all wanna go to DISNEYLAND for their holidays...not Washington DC.

The mass market is interested in Florida, or South Africa!...the market into Baltimore is a niche one only.

And another thing...where was this figure of '1bn euros required investment for fleet replacement/expansion' derived from?

If Aer Lingus needs new aircraft why can't they be leased instead of bought? Why do we need to OWN 1bn euros in aircraft when there are plenty of cheap aircraft on the lease market?

A conspiracy theorist could suggest that Willy wants to boost the net assetts of the company at the States expense, so that when its value has jumped by 1bn above where it stands now - he stood to make an even bigger grab of taxpayers cash if it was sold, floated, whatever.
I understand that in a typical company flotation, the top management share is normally around 3%...that would be 30 Million euros for the Three Amigos.
A nice round number, easily spilt 3 ways.

The more likely explanation is that the 1bn figure was just a huge random number meant to scare the bejaysus out of Bertie and get him to offload the problem toute suite by allowing the MBO.
In that case Willy would 'inherit' an asett worth around 600 Million euros (an even NICER number) and a free hand to do what the hell he wanted with it.
Assett stripping anyone?

Either way, its a win-win for Willy.
The boy who likes to WIN.