View Full Version : Air Lingus axes 40% of all Staff

10th Oct 2001, 19:13
More bad news..

Ireland's flag carrier Aer Lingus has confirmed that it will shed 2,500 jobs - 40% of its permanent workforce.
The company is now putting together a survival plan, following the downturn in the aviation industry.

Earlier on Wednesday, Irish Prime Minister Bertie Ahern said it was determined to save the troubled national airline, as management and unions began talks on Wednesday to form a rescue strategy.

And public enterprise minister Mary Rourke said she was exploring ways of helping the cash-strapped state-owned company, despite an EU ruling setting strict limits on member government aid packages.

Bookings slump

The fallout from the terror attacks in Washington and New York on 11 September has hit Aer Lingus particularly hard.

The transatlantic route is crucial to the Irish national airline - half its flights operate between the United States and Ireland.

Bookings are down 80% on last year and it is estimated that the airline is currently losing 2.5m euros (£1.56m, $2.3m) a day.

On Tuesday, the airline said that it would slash its ticket prices by between 50% and 70% as it attempts to keep attracting customers on its European and transatlantic routes.

Fierce competition

As well as slashing prices on routes to America, Aer Lingus has gone into head-to-head competition with the other major Irish airline, Ryanair.

The discount carrier has taken a large chunk of the market for flights to the UK and continental Europe.

Aer Lingus has now cut prices to these destinations, offering tickets for IR£59 (£47, $69) return.

Ryanair has responded by lowering its prices on these routes to just IR £29.99 return and re-iterating its commitment to a 'lowest price guarantee'.

Budget airline Ryanair is one of the few airlines to be almost unaffected by the terrorist attacks in the United States.

Aer Lingus' recovery fizzles out

Aer Lingus' fortunes had improved in recent years.

In 2000, the company posted profits of 80m euros, and there was a plan for the state airline to be floated on the stock exchange in the near future.

However the foot and mouth crisis, industrial relations disputes, as well as the tragic events in the US have put an end to this privatisation plan.

Cut-backs are already in place, with meals no longer served on flights under 2 hours in duration, and temporary staff being let go.

The major headache for Aer Lingus will be how to fund the redundancy packages.

The company is expected to lose almost 90m euros this year, and the cost of the redundancy package for its staff will run to well over 125m euros.

Max Continuous
10th Oct 2001, 19:41
What's that in real money?

10th Oct 2001, 20:20
40% of staff...just unbelievable!

The Irish government is looking to guarantee loans to finance the mass redundancy payments.

Time to hit the pub and down some of the black stuff...

10th Oct 2001, 20:54
The great Ryanair con is on again. Just went to Ryanair.com clicked at random. DUB -STN 16/10 -23/10 £83GBP which is over a £100 for me. Yeh!!! Great fares, think I'll stick with the green

10th Oct 2001, 21:45
If that many jobs are to go what are the routes to suffer?

Porky Speedpig
10th Oct 2001, 22:30
Airbourne - yes, just did the same with Easyjet to try and get to PMI. After an hour of "sorry our reservations system isn't working" they turn out to be much more expensive than British Midland - several weeks before departure.

11th Oct 2001, 01:08
As you might expect, the unions are not quite ready to accept involuntary redundancy. Assuming that 40% of staff are unlikely to go voluntarily, what will the unions do ?

They wouldn't be crazy enough to do a Sabena and strike. Would they ?


11th Oct 2001, 01:23
but our bertie will keep "de shannon stop",
will someone please get real??

11th Oct 2001, 01:26
Does anyone know how many flight crew jobs are on the line?

11th Oct 2001, 04:05
Hey Airbourne....

Ask any of the 7 million pax that Fr carried last year about low fares and see who is believing the "ryanair Con", Go ahead and stick with the green..its your money spend it as you like, just tell me what EIN are charging on their web site for the same city to city fare (LHR or LGW)