All Over for Aer Lingus in Four Weeks as BA Gives Thumbs Down to Investment
Guest
Posts: n/a
All Over for Aer Lingus in Four Weeks as BA Gives Thumbs Down to Investment
From today's Sunday Times:
AER LINGUS is just four weeks from
being wound up after British Airways and a number of other potential investors turned down its pleas for cash.
Sources close to Rod Eddington, the BA chief executive, said that he met the Irish airline in London last week and told it he would not invest at present.
Aer Lingus directors say the company is on the verge of liquidation unless the unions agree to redundancies or the Irish government can persuade the European Union to relax its rules on state aid.
The board of the government-owned carrier was told on Thursday that nobody was intrerested in investing.
With no sign of a "white knight" investor and severe restrictions on the amount the government can inject, industry sources say
the company's only chance of survival is an early agreement with the unions on laying off 2,000 of its 6,200 workers.
However, a deal is unlikely as, according to Irish government sources, workers will receive only slightly more than Ireland's
statutory redundancy entitlement. This means that some workers with 20 years' service could receive little more than £3,000.
Senior union sources in Dublin said this weekend that workers "will burn the building" rather than accept the redundancy package. They had expected to get as much as £90,000.
Aer Lingus had hoped that BA might fly to its rescue but Lord Marshall, chairman of the British airline, told The Sunday Times that it is unlikely to take a stake.
Marshall was sceptical about any possible investment. He said Eddington met Aer Lingus but added that BA had been constantly approached by other airlines since the September 11 attacks on America.
He said: "The Irish government has approached, directly and indirectly, several parties, including us. Rod spoke to Aer Lingus in the context of a One World alliance meeting in London. But we would have to be very, very careful before we make any investment or take any interest in any other carrier in the current climate. It depends on what is on offer on what terms and at what price."
It is generally accepted that Aer Lingus will face liquidation if a rescue plan is not implemented. At a bleak board meeting on
Thursday, directors were told they had four weeks to put the company's survival plan into action or face insolvency.
Government and Aer Lingus sources have dismissed suggestions this week that a consortium of Irish businessmen may be interested in taking a strategic stake in the airline.
Non-Irish investors are, in effect, blocked from taking a majority stake in Aer Lingus under the terms of the US-Ireland agreement that allows Aer Lingus to fly into America. Although the agreement prohibits only non-Irish concerns from taking more than 49% of the airline, Aer Lingus sources this weekend said it was unlikely that the US Department of Trade would allow non-Irish interests to take more than 25%.
The EU has ruled out state aid to the airline, which is losing £2m a day, leaving the future of Aer Lingus in the hands of the
unions. Negotiations over redundancies are now the main obstacle to the company's survival.
Any attempt to use public money to save Aer Lingus would not only require a volte face by the EU but would also be met by a legal challenge from Ryanair. The Dublin-based regional airline CityJet, which is a subsidiary of Air France, has also said it
would oppose state aid to Aer Lingus.
being wound up after British Airways and a number of other potential investors turned down its pleas for cash.
Sources close to Rod Eddington, the BA chief executive, said that he met the Irish airline in London last week and told it he would not invest at present.
Aer Lingus directors say the company is on the verge of liquidation unless the unions agree to redundancies or the Irish government can persuade the European Union to relax its rules on state aid.
The board of the government-owned carrier was told on Thursday that nobody was intrerested in investing.
With no sign of a "white knight" investor and severe restrictions on the amount the government can inject, industry sources say
the company's only chance of survival is an early agreement with the unions on laying off 2,000 of its 6,200 workers.
However, a deal is unlikely as, according to Irish government sources, workers will receive only slightly more than Ireland's
statutory redundancy entitlement. This means that some workers with 20 years' service could receive little more than £3,000.
Senior union sources in Dublin said this weekend that workers "will burn the building" rather than accept the redundancy package. They had expected to get as much as £90,000.
Aer Lingus had hoped that BA might fly to its rescue but Lord Marshall, chairman of the British airline, told The Sunday Times that it is unlikely to take a stake.
Marshall was sceptical about any possible investment. He said Eddington met Aer Lingus but added that BA had been constantly approached by other airlines since the September 11 attacks on America.
He said: "The Irish government has approached, directly and indirectly, several parties, including us. Rod spoke to Aer Lingus in the context of a One World alliance meeting in London. But we would have to be very, very careful before we make any investment or take any interest in any other carrier in the current climate. It depends on what is on offer on what terms and at what price."
It is generally accepted that Aer Lingus will face liquidation if a rescue plan is not implemented. At a bleak board meeting on
Thursday, directors were told they had four weeks to put the company's survival plan into action or face insolvency.
Government and Aer Lingus sources have dismissed suggestions this week that a consortium of Irish businessmen may be interested in taking a strategic stake in the airline.
Non-Irish investors are, in effect, blocked from taking a majority stake in Aer Lingus under the terms of the US-Ireland agreement that allows Aer Lingus to fly into America. Although the agreement prohibits only non-Irish concerns from taking more than 49% of the airline, Aer Lingus sources this weekend said it was unlikely that the US Department of Trade would allow non-Irish interests to take more than 25%.
The EU has ruled out state aid to the airline, which is losing £2m a day, leaving the future of Aer Lingus in the hands of the
unions. Negotiations over redundancies are now the main obstacle to the company's survival.
Any attempt to use public money to save Aer Lingus would not only require a volte face by the EU but would also be met by a legal challenge from Ryanair. The Dublin-based regional airline CityJet, which is a subsidiary of Air France, has also said it
would oppose state aid to Aer Lingus.
Join Date: Oct 1999
Location: LHR
Posts: 556
Likes: 0
Received 0 Likes
on
0 Posts
Have you really got nothing better to do at a quarter to eight on a sunday morning than to reproduce articles out of the national newspaper that we are all in the process of reading ? Why don't you try some other hobby.
Join Date: Sep 2000
Location: God's own Earth
Posts: 113
Likes: 0
Received 0 Likes
on
0 Posts
I think the topic is important and worthy of inclusion. Positive responses to the crises at Aer Lingus would be more welcome than a couple of gripy comments from some heavily stressed in need of therapy individuals. Keep scanning the news Guvnor (I might have missed that one as I don't get the Times on a sunday!) 
Join Date: Apr 1999
Location: England
Posts: 335
Likes: 0
Received 0 Likes
on
0 Posts
Guvnor --- You really are showing your true qualities.....Over the last couple of weeks you have offered nothing either towards PPrune or its members......You have either ripped people to pieces ie Malgus scheme and enjoy giving out about airlines which are in trouble, some of us face the prospect of no job by the end of next week, we do not need you, who obviously deosn't appreicate the true facts passing opinion .......It is obvious you have some issues which only you can sort out !
The Original Whirly
Join Date: Feb 1999
Location: Belper, Derbyshire, UK
Posts: 4,326
Likes: 0
Received 0 Likes
on
0 Posts
I rarely read Sunday papers, and I don't often read "Rumours & News". So I suspect there's something long term going on here that I don't understand. But will someone please explain to me in simple terms how it can be in any way inappropriate to post news of an airline going down the tubes on an airline rumours and news forum.
This seems to be a case of Guv bashing and/or I don't like it so I'll shoot the messenger.
This seems to be a case of Guv bashing and/or I don't like it so I'll shoot the messenger.
Join Date: Oct 2001
Location: Basel CH
Posts: 81
Likes: 0
Received 0 Likes
on
0 Posts
Now who on earth has tought The Guvnor that ´copy and paste´ trick ??? 
But seriously Guvnor, keep up the good work ! If nobody wants to read it, then it´s their problem.
Best regards,
Saab 2000 Driver
But seriously Guvnor, keep up the good work ! If nobody wants to read it, then it´s their problem.
Best regards,
Saab 2000 Driver
Join Date: Jan 2001
Posts: 104
Likes: 0
Received 0 Likes
on
0 Posts
A lot of guys and gals log in from abroad and if any Ppruner takes it upon himself or herself to post some relevant news then I welcome it.
I do not condone the style of certain individuals but there again I, like the rest of you, am not forced into reading this Bulletin Board.
WE HAVE A CHOICE
I do not condone the style of certain individuals but there again I, like the rest of you, am not forced into reading this Bulletin Board.
WE HAVE A CHOICE
Guest
Posts: n/a
Actually, the reason I posted this article - amongst many others - is that it is highly relevant both in that it is (a) an airline; and (b) a company that a number of PPRuNers are employed by.
In addition, whist a large proportion of PPRuNers are UK based, it is incredibly naive on the part of certain people to assume that everyone sits down with the London Sunday Times every Sunday morning!
Jet A1 - if you didn't appreciate the fact that the Malgus scheme's figures simply didn't make logical sense - as was pointed out by numerous people including WWW and IFR as well as myself - then I think you're in the wrong game as a decent grasp of basic maths is essential even for a PPL!
I certainly take no pleasure in posting downbeat stories - I would much rather be posting stories that show business is recovering but over the last week I've only found one of those (confirming that Blue Fox was still intending to launch next spring as planned). Unfortunately, some people preferred to 7500 it to attack a 767 captain with whom they had problems.
At the same time, it's important to be realistic - there are too many people out there saying that everything will be fine in a couple of months which patently isn't going to be the case. This recession is going to take years - not months - and it's only just started. And this, by the way, is one forecast that I would be only too happy to be proven wrong on!
In addition, whist a large proportion of PPRuNers are UK based, it is incredibly naive on the part of certain people to assume that everyone sits down with the London Sunday Times every Sunday morning!
Jet A1 - if you didn't appreciate the fact that the Malgus scheme's figures simply didn't make logical sense - as was pointed out by numerous people including WWW and IFR as well as myself - then I think you're in the wrong game as a decent grasp of basic maths is essential even for a PPL!
I certainly take no pleasure in posting downbeat stories - I would much rather be posting stories that show business is recovering but over the last week I've only found one of those (confirming that Blue Fox was still intending to launch next spring as planned). Unfortunately, some people preferred to 7500 it to attack a 767 captain with whom they had problems.
At the same time, it's important to be realistic - there are too many people out there saying that everything will be fine in a couple of months which patently isn't going to be the case. This recession is going to take years - not months - and it's only just started. And this, by the way, is one forecast that I would be only too happy to be proven wrong on!
Join Date: Oct 2001
Location: midlands
Posts: 61
Likes: 0
Received 0 Likes
on
0 Posts
I find it sad that a work force would rather burn the building down rather than rally around and get the business back into shape so it can fight on another day. But I guess out of the ashes a Pheonix grew. It was a similar situation that caused the downfall of Ansett, to high a cost structure and not enough revenue and an owner that couldn't restructure.
Why can't an owner re invest into there company, regardless of whether they are a government or a privetly owned company.
Find somthing else to bash rather than the guv, if it wasn't for him there would only be half the threads on this web than there is .
Why can't an owner re invest into there company, regardless of whether they are a government or a privetly owned company.
Find somthing else to bash rather than the guv, if it wasn't for him there would only be half the threads on this web than there is .
Join Date: May 2001
Location: Timbuktu
Posts: 638
Likes: 0
Received 0 Likes
on
0 Posts
So Guvnor, can you clarify, the original post was merely 'news' and not just gloating?
If so, do you believe everything you read in the papers, or do you have a personal opinion?
If you have a personal opinion, would you be prepared to put some money where your mouth is?
The bet is "Aer Lingus to close within four weeks." I think that's November 25th. The term 'close' means 'shut down permanently in present form...brand dead'. What do you say?
If so, do you believe everything you read in the papers, or do you have a personal opinion?
If you have a personal opinion, would you be prepared to put some money where your mouth is?
The bet is "Aer Lingus to close within four weeks." I think that's November 25th. The term 'close' means 'shut down permanently in present form...brand dead'. What do you say?
Join Date: Dec 1999
Location: UK
Posts: 13
Likes: 0
Received 0 Likes
on
0 Posts
Guv
Keep posting the threads and take no notice of the professional wingers that seem to have taken over pprune lately and who knock everybody that wishes to say something they don't agree with. There was a poor BA cadet on Wannabees who got slaughtered by these a------es for posting a quite innocent thread.
If you only want pretty good news stories guys log off and go somewhere else and do us all a favour please.
Keep posting the threads and take no notice of the professional wingers that seem to have taken over pprune lately and who knock everybody that wishes to say something they don't agree with. There was a poor BA cadet on Wannabees who got slaughtered by these a------es for posting a quite innocent thread.
If you only want pretty good news stories guys log off and go somewhere else and do us all a favour please.
Join Date: Jul 2001
Location: manchester
Posts: 15
Likes: 0
Received 0 Likes
on
0 Posts
Sounds like some EI employees have the same mentality as those at sabena.
Most likely outcome of all this will also be similar to this ailing airline, regardless of EU, I think.
Most likely outcome of all this will also be similar to this ailing airline, regardless of EU, I think.
Join Date: May 2001
Location: Timbuktu
Posts: 638
Likes: 0
Received 0 Likes
on
0 Posts
Whoever wrote that article for the Sunday Times must realise that by publishing a piece of pure speculation such as that is they are increasing the chances of it actually happening substantially.
Would you, as an ordinary punter, buy a ticket to travel with Aer Lingus at Christmas if the Sunday Times says it's going to be bust by then?
I can't understand how they can get away with it. It is pure mischief making, all for the sake of flogging their rag.
Mischievous...now that's a good adjective to describe The Guvnor too I think.
Would you, as an ordinary punter, buy a ticket to travel with Aer Lingus at Christmas if the Sunday Times says it's going to be bust by then?
I can't understand how they can get away with it. It is pure mischief making, all for the sake of flogging their rag.
Mischievous...now that's a good adjective to describe The Guvnor too I think.
Join Date: Aug 2001
Location: uk
Posts: 182
Likes: 0
Received 0 Likes
on
0 Posts
Recently I have found myself having to filter through huge ammounts of arguments, pats on backs and blatent personal attacks on pprune!! For gods sake get a grip!! Everyone has to justify their points over and over. It is boring!! If you don't have something constructive to say then don't say it! If you don't like what you read don't read it but I think everyones opinion is valid cause it gives me the big picture to make up my own opinion! Grow up and stop slagging everyone off!
Please excuse the outburst but I had to say something!!!!!
Smile and be happy!!
Please excuse the outburst but I had to say something!!!!!
Smile and be happy!!
Magplug. living where its Sunday night by the time you get your Sunday morning paper. I would be waiting sometime before my copy arrived. Think outside your bed-sit.
Aer Lingus seem on the surface to have similar problems as Ansett, the only fix is to start fresh with the staff that want to work.
Aer Lingus seem on the surface to have similar problems as Ansett, the only fix is to start fresh with the staff that want to work.