Aer Lingus Profits Announced
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Aer Lingus Profits Announced
According to RTE (Irish Radio and Television):
Aer Lingus announces €107 million profit
14 April 2005 08:12
Aer Lingus has announced record profits of €107 million for 2004 - an increase of 29% on the previous year.
The figures, which were published this morning, show the number of passengers travelling with the airline rose by 5.5% to seven million, with two thirds of bookings made over the Internet.
In addition, sales rose by 2% to over €900 million, which partly reflects the low fares Aer Lingus is now charging.
The number of passengers flying trans-Atlantic routes rose by 7%. In continental Europe, where the airline has opened new destinations, passenger numbers were up by 25%.
However, staff numbers fell by almost 9% to just under 4,000.
While the financial results are healthy, the airline itself is facing some uncertainties.
Aer Lingus is still awaiting the appointment of a Chief Executive to replace Willie Walsh who left in January, and the Government still has to decide whether to privatise the airline.
http://www.rte.ie/news/2005/0414/aerlingus.html
Aer Lingus announces €107 million profit
14 April 2005 08:12
Aer Lingus has announced record profits of €107 million for 2004 - an increase of 29% on the previous year.
The figures, which were published this morning, show the number of passengers travelling with the airline rose by 5.5% to seven million, with two thirds of bookings made over the Internet.
In addition, sales rose by 2% to over €900 million, which partly reflects the low fares Aer Lingus is now charging.
The number of passengers flying trans-Atlantic routes rose by 7%. In continental Europe, where the airline has opened new destinations, passenger numbers were up by 25%.
However, staff numbers fell by almost 9% to just under 4,000.
While the financial results are healthy, the airline itself is facing some uncertainties.
Aer Lingus is still awaiting the appointment of a Chief Executive to replace Willie Walsh who left in January, and the Government still has to decide whether to privatise the airline.
http://www.rte.ie/news/2005/0414/aerlingus.html
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Aer Lingus net profit - Euro 1.2m
Nice to see RTE et al playing up EI's profits and downplaying the 102m Euro exceptionals that wiped them out. EI have had some bad luck - the windblown 330s and the fuel leak which has enriched various lessors but the cleaning contract which EI have paid 600,000 Euro on so far without receiving any cleaning because the unions didn't give the OK was some parting gift from WW.
(corrected to up the figure from 400 > 600k - I understated the waste!)
(corrected to up the figure from 400 > 600k - I understated the waste!)
Last edited by MarkD; 15th Apr 2005 at 00:08.
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I don't know any details about that cleaning issue MarkD, but I do know how Aer Lingus management think - especially under Walsh.
Basically, they aren't interested in discussing anyones concerns about their job - they ultimately intend to eliminate all permanent positions in the airline anyhow.
So, the cleaners won't roll over because their jobs are being farmed out to immigrant slave labourers?
FAIR PLAY TO THEM.
Pilots are next.
Basically, they aren't interested in discussing anyones concerns about their job - they ultimately intend to eliminate all permanent positions in the airline anyhow.
So, the cleaners won't roll over because their jobs are being farmed out to immigrant slave labourers?
FAIR PLAY TO THEM.
Pilots are next.
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Idunno
I don't blame the unions on this one, I blame the management fools who signed a contract without making it conditional on being able to go ahead.
http://www.finfacts.com/irelandbusin...10001348.shtml
I don't blame the unions on this one, I blame the management fools who signed a contract without making it conditional on being able to go ahead.
http://www.finfacts.com/irelandbusin...10001348.shtml
For instance, the Irish Independent has learned that Aer Lingus is paying €2.4m a year to a private cleaning firm for services which are still being carried out exclusively by Aer Lingus employees. Last November, Aer Lingus decided to outsource its cleaning division with the loss of 60 jobs.
The company signed a €2.4m annual contract with UK company Fernley Aviation Services to clean planes. It was signed without getting agreement from unions and staff. Last February, Aer Lingus made its first payment of €600,000 under the terms of the contract - for services the airline has been unable to avail of. The second €600,000 payment is due next month.
The company signed a €2.4m annual contract with UK company Fernley Aviation Services to clean planes. It was signed without getting agreement from unions and staff. Last February, Aer Lingus made its first payment of €600,000 under the terms of the contract - for services the airline has been unable to avail of. The second €600,000 payment is due next month.
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It would seem that there are still dreamers in Ireland that think it's impossible to topple EI. I can't understand why the economic facts and archaic work practices don't speak for themselves!
.
Bad days back as Aer Lingus flies into trouble
STORM clouds were gathering over Aer Lingus last night after poor financial results cast doubt on the airline's ability to attract the private investment it needs.
An early stock market flotation was in jeopardy as the state-owned company admitted it is having trouble implementing the cost-cutting measures which would secure its future.
John Sharman, the executive chairman of Aer Lingus, said work practices were changing but the pace is "very, very slow".
His comments came on a day when Aer Lingus revealed that, while it had spent nearly €100m funding redundancies last year, its pay bill still rose by 2pc.
The airline's annual results showed that despite a strong trading performance, it made a pre-tax profit of only €1.2m after paying out €98m to induce 734 employees to leave the company.
The figures paint a picture of a company in poorer shape than previously thought and prompted fears that the airlien was drifting back to the bad old ways when its very survival was in doubt.
It is now more likely that a stock market flotation will be put on the back burner. Aviation analysts and investment bankers who advise on stock market flotations were last night questioning the attractiveness of Aer Lingus as an investment while so many cost issues have still to be resolved.
In light of stalled progress on implementing the business plan, and the lack of a successor to former chief executive Willie Walsh, some international investors are sceptical of the Government's ability to sell Aer Lingus at anything other than a bargain-basement price.
"Right now the Government's only options are to delay the flotation or to sell the company off cheaply," said one corporate financier. An international aviation analyst said the biggest issue is leadership. "Would you put millions into Aer Lingus without a chief executive who had experience of the company holding your hand?" he asked.
Mr Sharman seemed to accept that any flotation of Aer Lingus would not happen immediately, but he rejected one banker's suggestion that the airline is no longer saleable. He said: "Would I recommend that the company is sold tomorrow? No. But that's very different to saying that it is unsaleable."
The Aer Lingus business plan allowed for last year's staff vacancies to be filled by staff moving from other parts of the company. The airline could not get agreement on a range of new work practices which has forced it to hire hundreds of temporary staff to fill the roles of departing full-time staff. It has also been forced to shell out millions of euro to pay overtime to cover for staff who have been persuaded to depart.
Mr Sharman said he was particularly concerned that a lack of progress on new work practices was preventing the company becoming a low-cost operator on long-haul routes. He said: "This (the long-haul plan) is critical. Aer Lingus is a work in progress. It is a butterfly which is still part caterpillar. We desperately need to address the long-haul model."
Todays' Irish Indo.
.
Bad days back as Aer Lingus flies into trouble
STORM clouds were gathering over Aer Lingus last night after poor financial results cast doubt on the airline's ability to attract the private investment it needs.
An early stock market flotation was in jeopardy as the state-owned company admitted it is having trouble implementing the cost-cutting measures which would secure its future.
John Sharman, the executive chairman of Aer Lingus, said work practices were changing but the pace is "very, very slow".
His comments came on a day when Aer Lingus revealed that, while it had spent nearly €100m funding redundancies last year, its pay bill still rose by 2pc.
The airline's annual results showed that despite a strong trading performance, it made a pre-tax profit of only €1.2m after paying out €98m to induce 734 employees to leave the company.
The figures paint a picture of a company in poorer shape than previously thought and prompted fears that the airlien was drifting back to the bad old ways when its very survival was in doubt.
It is now more likely that a stock market flotation will be put on the back burner. Aviation analysts and investment bankers who advise on stock market flotations were last night questioning the attractiveness of Aer Lingus as an investment while so many cost issues have still to be resolved.
In light of stalled progress on implementing the business plan, and the lack of a successor to former chief executive Willie Walsh, some international investors are sceptical of the Government's ability to sell Aer Lingus at anything other than a bargain-basement price.
"Right now the Government's only options are to delay the flotation or to sell the company off cheaply," said one corporate financier. An international aviation analyst said the biggest issue is leadership. "Would you put millions into Aer Lingus without a chief executive who had experience of the company holding your hand?" he asked.
Mr Sharman seemed to accept that any flotation of Aer Lingus would not happen immediately, but he rejected one banker's suggestion that the airline is no longer saleable. He said: "Would I recommend that the company is sold tomorrow? No. But that's very different to saying that it is unsaleable."
The Aer Lingus business plan allowed for last year's staff vacancies to be filled by staff moving from other parts of the company. The airline could not get agreement on a range of new work practices which has forced it to hire hundreds of temporary staff to fill the roles of departing full-time staff. It has also been forced to shell out millions of euro to pay overtime to cover for staff who have been persuaded to depart.
Mr Sharman said he was particularly concerned that a lack of progress on new work practices was preventing the company becoming a low-cost operator on long-haul routes. He said: "This (the long-haul plan) is critical. Aer Lingus is a work in progress. It is a butterfly which is still part caterpillar. We desperately need to address the long-haul model."
Todays' Irish Indo.
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With Profits announced do you think there will be any chance of some extra flights.
When the EI and FR leave Bristol around 1400ish there is nothing untill after 7. Also a Shannon service has to be worth considering!
When the EI and FR leave Bristol around 1400ish there is nothing untill after 7. Also a Shannon service has to be worth considering!
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Aer Lingus only bases short-haul aircraft in Dublin and Cork, so I doubt a Shannon service could happen.
As Shannon is now a Ryanair base, it could be an option for them if they wanted to up services at Bristol.
As Shannon is now a Ryanair base, it could be an option for them if they wanted to up services at Bristol.
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It would seem that there are still dreamers in Ireland that think it's impossible to topple EI. I can't understand why the economic facts and archaic work practices don't speak for themselves!
I don't blame the unions on this one, I blame the management fools who signed a contract without making it conditional on being able to go ahead.
The airline made a profit of 110M euros with the existing workforce levels. Management blew the profits on redundancy packages. That was their stupid choice and patently unecessary. They are paying off senior captains right as we speak - on a large golden handshake - while at the same time having to cancel flights and/or ring up other pilots on their days off and beg them to come in and dig them out! What sort of effing nuttiness is that??
The greatest obstacle to the future success of Aer Lingus is the pig headed management.
