Aer Lingus to Leave Dublin Forever.
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so will aerlingus sell these aircrafts or move them to the UK?
Ive been reading that it could remove 7 aircrafts from dublin... surely this will just give ryanair even more potential and profits at dublin airport, leading to a complete demolish of aerlingus in ireland eventually!
It really looks to me that its only time b4 The Harp becomes the national carrier of the republic
Ive been reading that it could remove 7 aircrafts from dublin... surely this will just give ryanair even more potential and profits at dublin airport, leading to a complete demolish of aerlingus in ireland eventually!
It really looks to me that its only time b4 The Harp becomes the national carrier of the republic
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Leo,
Your command of English is extraordinary ( your content and effort, unfortunately, borders on insane ). Just wondering, would you consider giving my son grinds? I'll organise a visa for Howth.
In relation to ALT, time will tell. The imbalance in your protest highlights a deep insecurity. Is it fear? Your unhealthy obsession with AL and Ialpa is akin to that of the bunny boiler in Fatal Attraction.
Kind Regards,
no slot
p.s. go take a walk in Howth, it might clear that claustrophibic midlands mind.
Your command of English is extraordinary ( your content and effort, unfortunately, borders on insane ). Just wondering, would you consider giving my son grinds? I'll organise a visa for Howth.
In relation to ALT, time will tell. The imbalance in your protest highlights a deep insecurity. Is it fear? Your unhealthy obsession with AL and Ialpa is akin to that of the bunny boiler in Fatal Attraction.
Kind Regards,
no slot
p.s. go take a walk in Howth, it might clear that claustrophibic midlands mind.
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170 to 5
Yes we do have newspapers and on occasion read them. You are the one who needs to research before you post. I am well aware to the company profile and alot more aware of it than you but you are too young to remember so let me give you a brief history lesson on aerlingus. Basically before it was a private company the place never made a profit (fact) they stumbled from one chrisis to another propped up on goverment handouts (pre 1991) . Then on two occasions in the recent past when the Tax payer had some chance of getting something back ,2.80 per share from ryanair they turn it down and what are they worth now 50 cent per share. All this to keep them flying when we dont have enough nurses on the wards. The end is near for aerlingus they have to face reality sometime. Where is the 150 million going to come from to plug the hole in the pilots pension. The country is going down the tubes and it looks now like we might have a strike before christmas. Enough is enough
Yes we do have newspapers and on occasion read them. You are the one who needs to research before you post. I am well aware to the company profile and alot more aware of it than you but you are too young to remember so let me give you a brief history lesson on aerlingus. Basically before it was a private company the place never made a profit (fact) they stumbled from one chrisis to another propped up on goverment handouts (pre 1991) . Then on two occasions in the recent past when the Tax payer had some chance of getting something back ,2.80 per share from ryanair they turn it down and what are they worth now 50 cent per share. All this to keep them flying when we dont have enough nurses on the wards. The end is near for aerlingus they have to face reality sometime. Where is the 150 million going to come from to plug the hole in the pilots pension. The country is going down the tubes and it looks now like we might have a strike before christmas. Enough is enough
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c220cdi,
I think old age is getting the better of you there. Before it was privatised, it never made a profit (fact). Oh really, I suggest you do your homework before giving us the arm-chair verbal diarrhoea.
To keep who flying? Let me guess the over-paid pilots again! Have you had your head up in the same place as Leo?
I am well aware to the company profile and alot more aware of it than you but you are too young to remember so let me give you a brief history lesson on aerlingus. Basically before it was a private company the place never made a profit (fact)
All this to keep them flying when we dont have enough nurses on the wards
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c220cdi, I remember. Aer Lingus was an employment centre for north Dublin and a centre of excellence in aviation for the nation. Aer Lingus was set up to connect our little isle to the world. Those years of loss that you remember where post deregulation and at that same time RyanAir was lossing vast sums of Tony Ryans personal wealth in order to keep his boy in employment. For the last few years Aer Lingus has done quite well, it has expanded hugely and connected Ireland to most of Europe, it has been largely profitable but has suffered as all airlines have in this crisis (RyanAir returned to loss again this year). The share price has no relation to the wealth of the company as minuscule stock is traded due to the current dead lock. If indeed you are what you pro port to be a concerned citizen concerned that we the people may not get our monies worth then join with us and insist that RyanAir sell its stake there by freeing up the free board and allowing the share price to realize its true worth. But that's not really what you're about, is it?
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Ah lads seriously, Stop giving c220 a hard time....his tirade of delrium is entertaining!!! I love whenever a new crack pot arm chair enthusiast joins the professionals in Pprune!!!!
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Aer Lingus Recruitment
First Officer - Washington Dulles
On March 28th next, Aer Lingus will commence daily scheduled service between Washington Dulles and Madrid. This service will be operated in conjunction with our code-share partner United Airlines and will capitalise on the opportunity presented by the Open Skies agreement between the United States and the European Union.
We are currently looking for experienced First Officers to join Aer Lingus at our new long haul base in Washington Dulles. This is an exciting opportunity to be part of this new team from the beginning.
Aer Lingus will operate A330, twin class aircraft flying exclusively from Washington Dulles to our launch destination Madrid, Spain.
To be considered for a position as Aer Lingus First Officer, applicants must be able to meet the following criteria:
Key Competencies include:
Highly motivated and keen to take responsibility and accountability.
Strong leadership potential with well developed teamwork skills.
Excellent communication skills combined with proven interpersonal skills.
A broad awareness of our customers' expectations.
Flexible and adaptable with an enthusiastic and positive attitude to change.
Qualifications
FAA - ATPL with current A330 rating or JAA - ATPL with current A330 rating*.
Current Class 1 Medical.
Minimum 3000 flying hours with at least 1000 hours on A330 aircraft*.
English Language Proficiency (ELP) ICAO level 4 or higher.
Must fulfil government-required criminal background checks to qualify for unescorted access privileges to airport security identification display areas. Must secure airport authority and/or U.S. Customs security badges, if applicable.
United States citizen or possess the legal right to work and live in the U.S. without restriction.
Possess a current unrestricted worldwide passport.
Capable of arriving at Washington Dulles airport within 1 hour when on reserve duty.
Be prepared to adhere to all Aer Lingus uniform standards, including that no tattoos, body piercings or tongue rings are visible in the Aer Lingus Uniform. Tattoos may not be covered with adhesive bandages or by other methods, to render them not visible.
A minimum of 5ft 2in (1.58m) to a maximum of 6ft 3in (1.93m) in height, with weight in proportion, such that the ability to perform all job functions is not impacted or hindered. Qualified pilots who are taller than 6ft 3in (1.93m) may submit an application but will be required to undergo a functionality check to confirm their ability to meet the requirements of the seating positions in the Aer Lingus fleet of aircraft.
*Please note: In the event that we do not receive sufficient applicants with the required A330 rating, we will accept applications from First Officers who hold a current EU/JAA licence with an A320 rating and a minimum of 1000 hours on type.
To apply for these positions: Please complete the attached Application Form and return it by email to [email protected].
The closing date for receipt of applications is 12.00 noon EST on Wednesday 16th December 2009.
First Officer - Washington Dulles
On March 28th next, Aer Lingus will commence daily scheduled service between Washington Dulles and Madrid. This service will be operated in conjunction with our code-share partner United Airlines and will capitalise on the opportunity presented by the Open Skies agreement between the United States and the European Union.
We are currently looking for experienced First Officers to join Aer Lingus at our new long haul base in Washington Dulles. This is an exciting opportunity to be part of this new team from the beginning.
Aer Lingus will operate A330, twin class aircraft flying exclusively from Washington Dulles to our launch destination Madrid, Spain.
To be considered for a position as Aer Lingus First Officer, applicants must be able to meet the following criteria:
Key Competencies include:
Highly motivated and keen to take responsibility and accountability.
Strong leadership potential with well developed teamwork skills.
Excellent communication skills combined with proven interpersonal skills.
A broad awareness of our customers' expectations.
Flexible and adaptable with an enthusiastic and positive attitude to change.
Qualifications
FAA - ATPL with current A330 rating or JAA - ATPL with current A330 rating*.
Current Class 1 Medical.
Minimum 3000 flying hours with at least 1000 hours on A330 aircraft*.
English Language Proficiency (ELP) ICAO level 4 or higher.
Must fulfil government-required criminal background checks to qualify for unescorted access privileges to airport security identification display areas. Must secure airport authority and/or U.S. Customs security badges, if applicable.
United States citizen or possess the legal right to work and live in the U.S. without restriction.
Possess a current unrestricted worldwide passport.
Capable of arriving at Washington Dulles airport within 1 hour when on reserve duty.
Be prepared to adhere to all Aer Lingus uniform standards, including that no tattoos, body piercings or tongue rings are visible in the Aer Lingus Uniform. Tattoos may not be covered with adhesive bandages or by other methods, to render them not visible.
A minimum of 5ft 2in (1.58m) to a maximum of 6ft 3in (1.93m) in height, with weight in proportion, such that the ability to perform all job functions is not impacted or hindered. Qualified pilots who are taller than 6ft 3in (1.93m) may submit an application but will be required to undergo a functionality check to confirm their ability to meet the requirements of the seating positions in the Aer Lingus fleet of aircraft.
*Please note: In the event that we do not receive sufficient applicants with the required A330 rating, we will accept applications from First Officers who hold a current EU/JAA licence with an A320 rating and a minimum of 1000 hours on type.
To apply for these positions: Please complete the attached Application Form and return it by email to [email protected].
The closing date for receipt of applications is 12.00 noon EST on Wednesday 16th December 2009.
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Endgame at Aer Lingus
From the Sunday Independent.
Sunday December 06 2009
BOLSHIE trade unions who obstinately refuse to accept economic reality, an organisation that is rapidly going broke, a business model that has been rendered totally obsolete by aggressive competitors. The longer the Aer Lingus saga drags on the more it seems like a microcosm for Ireland as a whole.
After eight weeks of shadow-boxing, the Aer Lingus endgame is rapidly approaching. This week the company's board decided to establish a taskforce to implement compulsory redundancies and reductions in the airline's fleet. The move, which looks like triggering a strike at Aer Lingus, comes after the trade unions refused to sign up for the €97m cost-cutting package unveiled by chief executive Christoph Mueller on October 7.
While some of the 4,000-strong Aer Lingus workforce have indicated a willingness to accept the Mueller plan, which includes 676 layoffs and 10 per cent pay cuts for all staff earning over €35,000 a year, two groups -- cabin staff and pilots -- have refused to agree.
The strongest opposition of all seems to be coming from the pilots.
Apparently these horny-handed sons of the soil, who are legally restricted to working a maximum of 900 hours annually and earn up to €300,000, are demanding a 4 per cent stake in the airline, among other things, before signing on the dotted line.
Get real. Aer Lingus is rapidly bleeding to death with its cash balances plunging from €654m at the middle of last year to just €440m by mid-2009.
Analysts reckon that the company's cash balances will have shrivelled to less than €300m by the end of this year. At this rate of cash burn Aer Lingus will be out of business by the end of 2010.
With Ryanair eating Aer Lingus alive on short-haul and competition from US airlines having turned the transatlantic market into a bloodbath the status quo is not an option. If the Aer Lingus trade unions make good on their strike threats will the airline's workers have jobs to go back to?
Sunday December 06 2009
BOLSHIE trade unions who obstinately refuse to accept economic reality, an organisation that is rapidly going broke, a business model that has been rendered totally obsolete by aggressive competitors. The longer the Aer Lingus saga drags on the more it seems like a microcosm for Ireland as a whole.
After eight weeks of shadow-boxing, the Aer Lingus endgame is rapidly approaching. This week the company's board decided to establish a taskforce to implement compulsory redundancies and reductions in the airline's fleet. The move, which looks like triggering a strike at Aer Lingus, comes after the trade unions refused to sign up for the €97m cost-cutting package unveiled by chief executive Christoph Mueller on October 7.
While some of the 4,000-strong Aer Lingus workforce have indicated a willingness to accept the Mueller plan, which includes 676 layoffs and 10 per cent pay cuts for all staff earning over €35,000 a year, two groups -- cabin staff and pilots -- have refused to agree.
The strongest opposition of all seems to be coming from the pilots.
Apparently these horny-handed sons of the soil, who are legally restricted to working a maximum of 900 hours annually and earn up to €300,000, are demanding a 4 per cent stake in the airline, among other things, before signing on the dotted line.
Get real. Aer Lingus is rapidly bleeding to death with its cash balances plunging from €654m at the middle of last year to just €440m by mid-2009.
Analysts reckon that the company's cash balances will have shrivelled to less than €300m by the end of this year. At this rate of cash burn Aer Lingus will be out of business by the end of 2010.
With Ryanair eating Aer Lingus alive on short-haul and competition from US airlines having turned the transatlantic market into a bloodbath the status quo is not an option. If the Aer Lingus trade unions make good on their strike threats will the airline's workers have jobs to go back to?
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stop the lights!!! the indo doesn't like us!!! FFS leo if you must post, post news.
Now its 300,000 last week 400,000 if the indo keeps giving me pay cuts like that I shall shortly be paying to come to work, hmmm... wonder if that will catch on?
Now its 300,000 last week 400,000 if the indo keeps giving me pay cuts like that I shall shortly be paying to come to work, hmmm... wonder if that will catch on?
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Well Leo..,hows things....! 400000 to 300000 its really getting like ryanscare now....! First off we had a post a few days ago stating ryanair get 150000 now we all know thats 
....! Uk Capt get just about 95000p.a all in.....,as for the rest of euro....well apart from Dublin get 118000 and dub 125000.....! So I can understand how the rest of my work mates dont want to do a deal with management .., because no matter what they feed to us we know that as soon as we sign that dotted line are t+c are doomed like your work mates Leo who have none.....! I understand we are in bad shape but putting the blame on high wages is .., its a contributer but by going in and slashing wages and having a hard line approach has pissed off alot of people...! Ok come to the table with an open mind not with an ultimatum....!
....! Uk Capt get just about 95000p.a all in.....,as for the rest of euro....well apart from Dublin get 118000 and dub 125000.....! So I can understand how the rest of my work mates dont want to do a deal with management .., because no matter what they feed to us we know that as soon as we sign that dotted line are t+c are doomed like your work mates Leo who have none.....! I understand we are in bad shape but putting the blame on high wages is .., its a contributer but by going in and slashing wages and having a hard line approach has pissed off alot of people...! Ok come to the table with an open mind not with an ultimatum....!
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Ladies and gentlemen,
what has always amazed me when talking to AEL pilots and cabin crew is the firm unshakable belief that the company cannot be allowed go bust. " Somebody" will step in to save them and worst case if redundancies have to be introduced the terms will be so generous it will tide them over for a few years and then they can reapply. Not one of the posts from the shamrock guys conveys a sense of " hey we might be in a spot of trouble here".
AEL is entering the end game, don't take my word for it, don't take Leo's just look at the share price. No company can continue to haemorrage cash at that rate and survive. AEL main market has bombed and coupled with a serious hike in Airport charges in Dublin we can expect passanger numbers to plumet for all airlines. Northern Ireland is also in the depth of a severe recession.And while AEL made an attempt to diversify in LGW it was too late. AEL are taking on an excellent well known orange brand in their own back yard. ( Hey LEO what you think of easy's yields being higher than FR?). FR is running out of Ireland to sunnier more profibable climes. So guys, the question any investor will ask, show me the money!! Where is it going to come from??
Those in AEL are of the firm belif that they are far better off alone and its only a matter of time before the miracle happens and the money rolls in.The rest of the world disagrees. So what if AEL is forced to merge? Whats it got. To non Irish companies it has slots in Heathrow. To spite what an company making an offer for AEL might say and what promises it gives it will only be after the slots. AEL long haul is shot and can you see any company commiting the resorces to take on FR in its back yard in a market that is on its knees? They will buy and asset strip- no question.
Then there is the FR offer- not my call.
As for the AEL pilots share holding- Do you really think holding over 4% of shares will make an differance to a take over. This will be decided between the cash starved goverment and the EU. And make no mistake this goverment is desperate, selling its stake in AEL would mean it could roll out a cervical screening programme for teenage girls. What do you think would go down better with the voters?
So whats going to happen? The old boys in AEL run IALPA and make no mistake, sacraficing the company to ensure their pensions is a small price to pay. Just keeping the company struggling along for a couple of years means a huge amount to these boys pensions, ( By the way how much does AEL owe the pension pot?).
A while back I would have said the future is AEL hands but not any more, its too late for that.
what has always amazed me when talking to AEL pilots and cabin crew is the firm unshakable belief that the company cannot be allowed go bust. " Somebody" will step in to save them and worst case if redundancies have to be introduced the terms will be so generous it will tide them over for a few years and then they can reapply. Not one of the posts from the shamrock guys conveys a sense of " hey we might be in a spot of trouble here".
AEL is entering the end game, don't take my word for it, don't take Leo's just look at the share price. No company can continue to haemorrage cash at that rate and survive. AEL main market has bombed and coupled with a serious hike in Airport charges in Dublin we can expect passanger numbers to plumet for all airlines. Northern Ireland is also in the depth of a severe recession.And while AEL made an attempt to diversify in LGW it was too late. AEL are taking on an excellent well known orange brand in their own back yard. ( Hey LEO what you think of easy's yields being higher than FR?). FR is running out of Ireland to sunnier more profibable climes. So guys, the question any investor will ask, show me the money!! Where is it going to come from??
Those in AEL are of the firm belif that they are far better off alone and its only a matter of time before the miracle happens and the money rolls in.The rest of the world disagrees. So what if AEL is forced to merge? Whats it got. To non Irish companies it has slots in Heathrow. To spite what an company making an offer for AEL might say and what promises it gives it will only be after the slots. AEL long haul is shot and can you see any company commiting the resorces to take on FR in its back yard in a market that is on its knees? They will buy and asset strip- no question.
Then there is the FR offer- not my call.
As for the AEL pilots share holding- Do you really think holding over 4% of shares will make an differance to a take over. This will be decided between the cash starved goverment and the EU. And make no mistake this goverment is desperate, selling its stake in AEL would mean it could roll out a cervical screening programme for teenage girls. What do you think would go down better with the voters?
So whats going to happen? The old boys in AEL run IALPA and make no mistake, sacraficing the company to ensure their pensions is a small price to pay. Just keeping the company struggling along for a couple of years means a huge amount to these boys pensions, ( By the way how much does AEL owe the pension pot?).
A while back I would have said the future is AEL hands but not any more, its too late for that.
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AL - God help us!
AL unions/employees better realise the end is nigh if they do not agree NOW to the new T&C's requested by management.
I use AL whenever I can - so long as the price difference (nearly always dearer) is within reason when compared to other airlines within Europe or when crossing the big pond.
It is - almost - entirely the fault of the AL unions/employees it is now near the end game.
The past is past and the good old days will NEVER come back.
(This applies to thousands of businesses in the ROI)
If the necessary changes now requested by management are implemented AL might survive - but there are no guarantees because it's main customer base, the ROI, will not recover economically until at least 2013/4. Can it hang in there in the meantime?
I will not put my NAMA loan on it!
(For those of you located outside of the ROI, NAMA is the National Asset Management Agency set up by our Government to take the toxic building loans off the Banks at the taxpayers expense - God help us).
I use AL whenever I can - so long as the price difference (nearly always dearer) is within reason when compared to other airlines within Europe or when crossing the big pond.
It is - almost - entirely the fault of the AL unions/employees it is now near the end game.
The past is past and the good old days will NEVER come back.
(This applies to thousands of businesses in the ROI)
If the necessary changes now requested by management are implemented AL might survive - but there are no guarantees because it's main customer base, the ROI, will not recover economically until at least 2013/4. Can it hang in there in the meantime?
I will not put my NAMA loan on it!
(For those of you located outside of the ROI, NAMA is the National Asset Management Agency set up by our Government to take the toxic building loans off the Banks at the taxpayers expense - God help us).
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Beernice,
the government, ultimately the kingmakers in my opinion, where as much at their knees last february when they rejected FR's second approach. They have stated that they support a "two airline policy". The money they would receive at current EI share price would cover only half of the money the government here are losing per week. The cervical screening scheme is a very worthy project, but funding it by handing FR a virtual monopoly of Irish air travel would be very questionable. MOL himself was very concerned about this very cause last year when trying to convince the public about his bid for AL. Im sure if he ran a charity campaign along the lines of his lisbon referendum campaign, a lot of money could be raised for such a project. Times are tough here in Ireland, and for the government, its no longer a popularity contest. Tough decisions have to be made, and there will be a lot more pain to come for all of us, as Irish citizens, on wednesday with the forthcoming budget.
the government, ultimately the kingmakers in my opinion, where as much at their knees last february when they rejected FR's second approach. They have stated that they support a "two airline policy". The money they would receive at current EI share price would cover only half of the money the government here are losing per week. The cervical screening scheme is a very worthy project, but funding it by handing FR a virtual monopoly of Irish air travel would be very questionable. MOL himself was very concerned about this very cause last year when trying to convince the public about his bid for AL. Im sure if he ran a charity campaign along the lines of his lisbon referendum campaign, a lot of money could be raised for such a project. Times are tough here in Ireland, and for the government, its no longer a popularity contest. Tough decisions have to be made, and there will be a lot more pain to come for all of us, as Irish citizens, on wednesday with the forthcoming budget.
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Pie in the sky this, but IF O'Leary/LHC could sever all ties with Ryanair - would he then be the right man to run Aer Lingus?
He'd have my vote. But even if he took the reigns tomorrow, would there still be an airline for him to run in 6 months time?
I genuinely hope that AL pull through this slump. It was the dream of flying for them that brought me into this industry and I still maintain today that it will happen.
Best of luck to all at AL
He'd have my vote. But even if he took the reigns tomorrow, would there still be an airline for him to run in 6 months time?
I genuinely hope that AL pull through this slump. It was the dream of flying for them that brought me into this industry and I still maintain today that it will happen.
Best of luck to all at AL
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Editorial Comment from Today's Irish Times.
Aer Lingus faces crucial decisions
THE SCALE of the problems facing Aer Lingus are reflected in its sizeable losses – €108 million last year and a further €93 million in the first half of 2009 – and the rate at which the airline is haemorrhaging cash as it struggles to return to profitability. Time is not on its side. By last June, the company’s net cash position had almost halved in just 12 months – declining by some €363 million. And since then, its cash balance has deteriorated further. Unless the airline makes far-reaching changes to its cost base, its future as an independent operator is not sustainable.
In negotiations with trade unions representing its workforce, the airline is seeking major job and pay cuts as well as changes in work practices to produce annual savings of €97 million. Progress has been made in talks with cabin crew but there is no agreement with pilots, the highest paid cohort within Aer Lingus. And in the absence of an accord with all unions, a management taskforce was established last week to consider the possibility of compulsory redundancies and fleet reduction. Chief executive Christoph Mueller has indicated that it will seek “north” of 1,000 job losses as it grounds aircraft and closes loss-making routes.
All airlines are operating in tough market conditions, beset by a range of uncertainties including the economic downturn, fluctuating oil prices and intense competition between carriers as a price war escalates and passenger fares are cut. But Aer Lingus has encountered its own particular difficulties. It has defeated two hostile takeover attempts by Ryanair and the past 15 months have seen major management changes at chairman and chief executive level.
The big problem confronting Aer Lingus is its continuing status as a high-cost airline struggling to compete against low-cost carriers such as Ryanair and EasyJet. The latter have much lower cost bases and operate with greater efficiency in a low fares market. Aer Lingus has engaged in a succession of cost-cutting exercises in recent years but as the economic downturn intensified, it has struggled to compete in both the short-haul and long-haul (transatlantic) markets. Payroll costs at the company remain far higher than at its counterparts.
For Aer Lingus to survive as an independent operator, it must make a very painful adjustment to its cost base. Otherwise it will be vulnerable either to a third takeover bid from Ryanair or to a scenario, as Michael O’Leary predicted recently, whereby Ryanair will be responding within a couple of years to an Aer Lingus request “to rescue it”.
For now, Aer Lingus remains master of its own fate with a brand that continues to command significant customer loyalty. But for how long that remains the case will be determined by the success or failure of the latest attempt to turn it around. As a company in which the employees have a substantial shareholding (19 per cent), the interests of workers and shareholders are closely aligned. That should make a resolution of its difficulties more achievable. But there is no minimising the risks and challenges involved.
Aer Lingus faces crucial decisions
THE SCALE of the problems facing Aer Lingus are reflected in its sizeable losses – €108 million last year and a further €93 million in the first half of 2009 – and the rate at which the airline is haemorrhaging cash as it struggles to return to profitability. Time is not on its side. By last June, the company’s net cash position had almost halved in just 12 months – declining by some €363 million. And since then, its cash balance has deteriorated further. Unless the airline makes far-reaching changes to its cost base, its future as an independent operator is not sustainable.
In negotiations with trade unions representing its workforce, the airline is seeking major job and pay cuts as well as changes in work practices to produce annual savings of €97 million. Progress has been made in talks with cabin crew but there is no agreement with pilots, the highest paid cohort within Aer Lingus. And in the absence of an accord with all unions, a management taskforce was established last week to consider the possibility of compulsory redundancies and fleet reduction. Chief executive Christoph Mueller has indicated that it will seek “north” of 1,000 job losses as it grounds aircraft and closes loss-making routes.
All airlines are operating in tough market conditions, beset by a range of uncertainties including the economic downturn, fluctuating oil prices and intense competition between carriers as a price war escalates and passenger fares are cut. But Aer Lingus has encountered its own particular difficulties. It has defeated two hostile takeover attempts by Ryanair and the past 15 months have seen major management changes at chairman and chief executive level.
The big problem confronting Aer Lingus is its continuing status as a high-cost airline struggling to compete against low-cost carriers such as Ryanair and EasyJet. The latter have much lower cost bases and operate with greater efficiency in a low fares market. Aer Lingus has engaged in a succession of cost-cutting exercises in recent years but as the economic downturn intensified, it has struggled to compete in both the short-haul and long-haul (transatlantic) markets. Payroll costs at the company remain far higher than at its counterparts.
For Aer Lingus to survive as an independent operator, it must make a very painful adjustment to its cost base. Otherwise it will be vulnerable either to a third takeover bid from Ryanair or to a scenario, as Michael O’Leary predicted recently, whereby Ryanair will be responding within a couple of years to an Aer Lingus request “to rescue it”.
For now, Aer Lingus remains master of its own fate with a brand that continues to command significant customer loyalty. But for how long that remains the case will be determined by the success or failure of the latest attempt to turn it around. As a company in which the employees have a substantial shareholding (19 per cent), the interests of workers and shareholders are closely aligned. That should make a resolution of its difficulties more achievable. But there is no minimising the risks and challenges involved.