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View Full Version : Tom Mulcahy stepped down as head of Aer Lingus


Bre901
30th May 2004, 19:32
Before 7550 or his kind start making comments about professionalism, I'm quite aware that the article is only 50% aviation related as two Irish CEOs resigned (independently) the same day.

The Beeb (http://news.bbc.co.uk/2/hi/business/3760943.stm)

ast Updated: Sunday, 30 May, 2004, 12:27 GMT 13:27 UK

Irish business chiefs quit jobs

Aer Lingus is a flagship of Irish business
Two of the Republic of Ireland's leading business executives have resigned in unrelated developments.

Tom Mulcahy stepped down as head of the state-run airline Aer Lingus following allegations of tax evasion involving the bank where he used to work.

Allied Irish Bank said some current and former executives had been involved in offshore investment schemes.

The chief of the Bank of Ireland also quit after admitting accessing websites with links to "adult material".

'Bank rules breached'

Michael Soden said he had taken the decision to resign for "personal reasons".

The content accessed was not illegal but did contain links to material of an adult nature

Mr Soden, ex-head, Bank of Ireland
"This arises from access by me on my PC to Internet sites that contain content that infringed the group's policy on these matters.

"The content accessed was not illegal but did contain links to material of an adult nature... I now understand and accept that in doing this I breached the policies of the bank."

Mr Soden, 57, joined Bank of Ireland in 2001, having previously worked for the National Australia Bank.

'Adverse publicity'

Mr Mulcahy was chief executive at AIB, Ireland's biggest bank, until 2001.

He denied any wrongdoing, saying he had resigned in order to safeguard the reputation of Aer Lingus.

He said he was "tax compliant" and knew nothing about a British Virgin Island company, Faldor, which is the focus of the AIB scandal.

"I am of the view that this whole issue draws adverse publicity on Aer Lingus as a state company by association," he said.

The case follows hard on the heels of AIB's admission earlier this month that it had mistakenly overcharged customers for foreign exchange transactions.

mini
30th May 2004, 20:18
Soden was a disaster, glad to find an out no doubt.

AIB are due for a fall, heads in the sand for too long.

With a bit of luck NH will be the next to fall on his sword, FF (Albert) appointee - 'nuff said, currently giving SB a pain in the butt.

Shafted his employees when in the pvt sector (nee naw) deserves to rot in hell IMHO.

Bertie has to cleanse FF and their ilk if Eire is to survive this century.

Apolitical mini

:suspect:

Idunno
31st May 2004, 22:41
mini, I don't suppose many of the non-Irish readers on this site understand what all this is about. I doubt they care much about Irish banking figures either.

However, the head of the state airline stepping down is worth debate.

I don't know just how much input Mulcahy had on day to day decision making at Aer Lingus, but I suspect he provided a rear guard action for his CEO and protege Willy Walsh. Now that we know that Mulcahy was on the make, surely one has to wonder what kind of culture he has helped to instill in that company, and in Walsh.

The banking system in Ireland is currently cracking under the strain of the seedy dealings and corruption of its leaders. Can we safely say that the lying and welching behaviour of Aer Lingus management is not actually indicative of a deeper malaise which has grown out of the culture instilled by the discredited Mulcahy?

Whatever the truth is, on balance this could be very bad news for Aer Lingus right now, to lose the man who was supposedly appointed because of his ability to bend the ear of the major financial istitutions in the run up to a possible privatisation. Who will replace him? Who'd want the job? What if his succesor dislikes Willys SuperEgo and can't work with him? Will we see another board room debacle just as we head into flotation? Or does Willy have the power of veto? Perhaps he already has his man picked out!

Interesting times ahead.

the highwayman
31st May 2004, 22:50
Maybe the vacant Aer Lingus job could be offered to one MOL ? Then he could lock himself away with wee Willie and give the rest of Dublin Airport a rest. For good measure Noel Hanlon (Aer Rianta chairman) and Minister Brennan could be locked away with them as well. They could even discuss the €7 million AR supposedly spent to date on Pier D (no plans etc......) and let the rest of us get on with the real business - getting pax from A to B safely.