Aer Lingus to Leave Dublin Forever.
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From today's Financial Times.
Aer Lingus chief warns of Ryanair threat
By Pilita Clark, Aerospace Correspondent
The new head of Aer Lingus has warned that the Irish airline risks being taken over by its larger rival Ryanair unless employees agree to his plans for sweeping cost cuts.
“If Aer Lingus isn’t capable of mastering its own destiny, then of course the likelihood that some form of non-independence might occur is more likely,” Christoph Mueller told the Financial Times on Tuesday.
Asked if this meant a takeover by Ryanair, Europe’s biggest low-cost carrier, which has made two thwarted bids for Aer Lingus, Mr Mueller said: “Yes.”
Under Irish takeover rules, Ryanair can make a third bid from late January.
“I believe there is a correlation between our ability to have an agreement with the unions and the likelihood of a bid,” Mr Mueller said. Ryanair holds just over 29 per cent of Aer Lingus. The Irish flag carrier’s staff own 15 per cent of its shares.
Mr Mueller, formerly of the TUI travel group and Germany’s Lufthansa, has been Aer Lingus chief executive since September. He has made progress with cabin crew and ground staff in talks on a €97m cost-saving plan involving job and pay cuts, but is still negotiating with pilots.
“I know that it is the desire of all our employees to stay independent and that is the reason I feel obliged to do everything I possibly can to reach an agreement with the unions,” said Mr Mueller. “One group of employees is resisting and bringing Aer Lingus closer to a situation where we might lose our independence.”
Aer Lingus reported a pre-tax loss of €119.7m for the year to December 31 and analysts say a failure to cut costs could jeopardise its independence.
“If there is a failure in the negotiations it leaves Aer Lingus much more vulnerable,” said Joe Gill of Bloxham stockbrokers in Dublin.
“If talks collapse you are back to looking at a business model that is fundamentally impaired. That will be reflected in the share price, so it’s easier for Ryanair to say they can come in and do a better job.”
Ryanair first bid €2.80 a share for Aer Lingus in October 2006, valuing the company at €1.48bn. That takeover was blocked by the European Commission on competition grounds.
A second bid worth half that of the first in December last year also failed after the Irish government, which has a 25 per cent stake in Aer Lingus, said it undervalued the airline.
Michael O’Leary, Ryanair’s chief executive, told the Financial Times recently Ryanair was “highly unlikely” to make a third offer for Aer Lingus, but added: “I think the government and unions will come here to us and ask us to help restructure Aer Lingus in a sensible way, probably ask us to manage it.”
Aer Lingus chief warns of Ryanair threat
By Pilita Clark, Aerospace Correspondent
The new head of Aer Lingus has warned that the Irish airline risks being taken over by its larger rival Ryanair unless employees agree to his plans for sweeping cost cuts.
“If Aer Lingus isn’t capable of mastering its own destiny, then of course the likelihood that some form of non-independence might occur is more likely,” Christoph Mueller told the Financial Times on Tuesday.
Asked if this meant a takeover by Ryanair, Europe’s biggest low-cost carrier, which has made two thwarted bids for Aer Lingus, Mr Mueller said: “Yes.”
Under Irish takeover rules, Ryanair can make a third bid from late January.
“I believe there is a correlation between our ability to have an agreement with the unions and the likelihood of a bid,” Mr Mueller said. Ryanair holds just over 29 per cent of Aer Lingus. The Irish flag carrier’s staff own 15 per cent of its shares.
Mr Mueller, formerly of the TUI travel group and Germany’s Lufthansa, has been Aer Lingus chief executive since September. He has made progress with cabin crew and ground staff in talks on a €97m cost-saving plan involving job and pay cuts, but is still negotiating with pilots.
“I know that it is the desire of all our employees to stay independent and that is the reason I feel obliged to do everything I possibly can to reach an agreement with the unions,” said Mr Mueller. “One group of employees is resisting and bringing Aer Lingus closer to a situation where we might lose our independence.”
Aer Lingus reported a pre-tax loss of €119.7m for the year to December 31 and analysts say a failure to cut costs could jeopardise its independence.
“If there is a failure in the negotiations it leaves Aer Lingus much more vulnerable,” said Joe Gill of Bloxham stockbrokers in Dublin.
“If talks collapse you are back to looking at a business model that is fundamentally impaired. That will be reflected in the share price, so it’s easier for Ryanair to say they can come in and do a better job.”
Ryanair first bid €2.80 a share for Aer Lingus in October 2006, valuing the company at €1.48bn. That takeover was blocked by the European Commission on competition grounds.
A second bid worth half that of the first in December last year also failed after the Irish government, which has a 25 per cent stake in Aer Lingus, said it undervalued the airline.
Michael O’Leary, Ryanair’s chief executive, told the Financial Times recently Ryanair was “highly unlikely” to make a third offer for Aer Lingus, but added: “I think the government and unions will come here to us and ask us to help restructure Aer Lingus in a sensible way, probably ask us to manage it.”
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35 million euro in cost savings and the company say that the pilots haven't delivered enough?
Are we to take it, then, that what the company actually wanted to achieve was 30 million euro (the figure I believe they asked for) and the disbandment of the union.
Such a shame, seeing as Muller was so keen to prove that a 'unionised airline could work' - as long as, presumably, the union was happy to bend over and cave in whenever the company came up with yet another remarkable, heavy handed and inappropriately named plan?
Are we to take it, then, that what the company actually wanted to achieve was 30 million euro (the figure I believe they asked for) and the disbandment of the union.
Such a shame, seeing as Muller was so keen to prove that a 'unionised airline could work' - as long as, presumably, the union was happy to bend over and cave in whenever the company came up with yet another remarkable, heavy handed and inappropriately named plan?
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How likely is an xmas strike at Aer Lingus?
Aer Lingus strike fears grow as 1,000 jobs axed - National News, Frontpage - Herald.ie
Have tickets booked from Brussels to Dublin to be with family at Christmas... should I have back-up plan with Ryanair? How serious are the chances of a strike over Christmas period?
Have tickets booked from Brussels to Dublin to be with family at Christmas... should I have back-up plan with Ryanair? How serious are the chances of a strike over Christmas period?
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Aer Lingus finance chief resigns
RTÉ Business: Aer Lingus finance chief resigns
[QUOTE]The number two executive at Aer Lingus has resigned his position and is also to leave the company's board.
Chief financial officer Sean Coyle had joined the airline from Ryanair only 17 months ago, in August 2008. A statement from Aer Lingus said Mr Coyle would leave his job at the end of the year by mutual agreement.
[QUOTE]
I wonder is Coyle after the Easyjet job since Andy Harrison has said he will resign from June of next year. This is a surprise announcement.
[QUOTE]The number two executive at Aer Lingus has resigned his position and is also to leave the company's board.
Chief financial officer Sean Coyle had joined the airline from Ryanair only 17 months ago, in August 2008. A statement from Aer Lingus said Mr Coyle would leave his job at the end of the year by mutual agreement.
[QUOTE]
I wonder is Coyle after the Easyjet job since Andy Harrison has said he will resign from June of next year. This is a surprise announcement.
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Hark! Even the darkest clouds have some form of reflective lining!
I trust that he is leaving to allow him to "spend more time with his family", and we would all, I'm sure "wish to thank Sean for the valuable contribution he has made to the company since he joined". (Or should that be "for the valuable withdrawals he has made from the company"??)
Indeed, we may even want to "wish him all the very best of luck for his future"
Anyone looking for a PR man?! I can e-mail a CV!
I trust that he is leaving to allow him to "spend more time with his family", and we would all, I'm sure "wish to thank Sean for the valuable contribution he has made to the company since he joined". (Or should that be "for the valuable withdrawals he has made from the company"??)
Indeed, we may even want to "wish him all the very best of luck for his future"
Anyone looking for a PR man?! I can e-mail a CV!
Last edited by 170to5; 9th Dec 2009 at 15:08.
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170 to 5
Dont have a party just yet. What is it they say about rats off a sinking ship. You just might find yourself in the near future spending a little more quality time at home with the family.
Dont have a party just yet. What is it they say about rats off a sinking ship. You just might find yourself in the near future spending a little more quality time at home with the family.
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Word is Coyle was antagonistically looking for IR trouble in a way anathema to even the rest of management. Now who might excessive IR chaos at EI benefit most? No suprises as to who he was really working for all along. The only surprise is it took EI so long to figure it out.
How long before he's back in the white house? Only this time without the promise of running "ryanair operated by Aer Lingus".
How long before he's back in the white house? Only this time without the promise of running "ryanair operated by Aer Lingus".
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Camelair
No surprise who he was working for?
What on earth could he learn working in aerlingus, possibly how to blow 700 million. Ryanair has no big secret to learn from arelingus i suspect aerlingus could do with sending a mole accross the street to ryanair ,might learn a thing or too. Willy walked away to better things.
No surprise who he was working for?
What on earth could he learn working in aerlingus, possibly how to blow 700 million. Ryanair has no big secret to learn from arelingus i suspect aerlingus could do with sending a mole accross the street to ryanair ,might learn a thing or too. Willy walked away to better things.
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c220, you're a bit off the mark there. Try again. Think somewhere along the lines of the consequences of having your own man inside if you want to take over a company.
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C220,
you said " rats off a sinking ship ". The first ship he jumped off was blue and white. On the green ship, looks like he may have been given the bullet for miscalculating a recent redundancy and migration package, and for failing to reflect a considerable DB pension deficit on the balance sheet.
Which ship did he jump from first? and second? was he pushed?
rgds
no slot
you said " rats off a sinking ship ". The first ship he jumped off was blue and white. On the green ship, looks like he may have been given the bullet for miscalculating a recent redundancy and migration package, and for failing to reflect a considerable DB pension deficit on the balance sheet.
Which ship did he jump from first? and second? was he pushed?
rgds
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....so,if he's "spending more time with the family", from now on, how,s about a suggested reading list?
1.) King RAT.....by James Clavell
2.) Secret diary of Adrian MOLE...
any more witty suggestions, lads?
1.) King RAT.....by James Clavell
2.) Secret diary of Adrian MOLE...
any more witty suggestions, lads?
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Irish Times.
CIARÁN HANCOCK, Business Affairs Correspondent
AER LINGUS has told Enterprise, Trade and Employment Minister Mary Coughlan it will seek 1,065 compulsory redundancies if it fails to reach agreement on its €97 million cost-cutting plan with its trade unions.
A letter from Aer Lingus human resources director Michael Grealy, dated December 7th, which has been seen by The Irish Times , outlines to the Minister the airline’s “proposed collective redundancies” on a “compulsory basis”.
Aer Lingus said 590 staff would be cut from its ground service operations in Dublin, Cork and Shannon airports from a total of 2,000 employees in this area.
Ground services comprises management, operatives and clerical, and maintenance and specialists staff.
Aer Lingus will seek 336 redundancies from cabin crew at these locations from a total of 1,400.
The airline also plans to cut 139 pilots from 520 based in Dublin and Cork.
Aer Lingus said the redundancies would be implemented between January 1st next year and the end of March 2011.
“In the case of Dublin, Cork and Shannon airport, Aer Lingus is forecasting significant losses for 2009 and beyond,” the letter from Mr Grealy states.
He said it was “critical” for Aer Lingus to “immediately take steps to radically change” its staff costs base to align it with other airlines. “It has not been possible to achieve the necessary savings by agreement, hence the need for compulsory redundancies,” Mr Grealy’s letter added.
Aer Lingus has been in consultation with its trade unions – Siptu, Impact, pilots’ body Ialpa and the Craft Group of Trade Unions – since October 7th.
Ialpa said yesterday that talks between pilots and Aer Lingus broke down last night without agreement.
The pilots’ representative body said Aer Lingus had rejected a cost-reduction package proposed by the pilots which would have amounted to €33 million a year.
Ialpa said this involved pay cuts, pay freezes and a substantial reduction in pilot numbers.
Aer Lingus disputed this. “While some progress was made, the level of savings offered by Ialpa fell significantly below what was required by the company,” the airline said.
“Much of the savings came from reductions in pilot numbers at the very top of the scales. However, the level of pay cuts/pay freezes proposed from those who will stay with the company were insufficient.
“Other employees recognise the financial position of the company and are prepared to act accordingly, Ialpa are not.”
Enda Corneille, Aer Lingus’s corporate affairs director, said agreement had been reached with Impact, which represents cabin crew, Siptu and the craft union.
“There is simply no movement from the pilots,” Mr Corneille added.
Evan Cullen, Ialpa’s president, rejected this and said the union remained open to negotiation. “We are always available for talks subject to our roster duties,” he said.
CIARÁN HANCOCK, Business Affairs Correspondent
AER LINGUS has told Enterprise, Trade and Employment Minister Mary Coughlan it will seek 1,065 compulsory redundancies if it fails to reach agreement on its €97 million cost-cutting plan with its trade unions.
A letter from Aer Lingus human resources director Michael Grealy, dated December 7th, which has been seen by The Irish Times , outlines to the Minister the airline’s “proposed collective redundancies” on a “compulsory basis”.
Aer Lingus said 590 staff would be cut from its ground service operations in Dublin, Cork and Shannon airports from a total of 2,000 employees in this area.
Ground services comprises management, operatives and clerical, and maintenance and specialists staff.
Aer Lingus will seek 336 redundancies from cabin crew at these locations from a total of 1,400.
The airline also plans to cut 139 pilots from 520 based in Dublin and Cork.
Aer Lingus said the redundancies would be implemented between January 1st next year and the end of March 2011.
“In the case of Dublin, Cork and Shannon airport, Aer Lingus is forecasting significant losses for 2009 and beyond,” the letter from Mr Grealy states.
He said it was “critical” for Aer Lingus to “immediately take steps to radically change” its staff costs base to align it with other airlines. “It has not been possible to achieve the necessary savings by agreement, hence the need for compulsory redundancies,” Mr Grealy’s letter added.
Aer Lingus has been in consultation with its trade unions – Siptu, Impact, pilots’ body Ialpa and the Craft Group of Trade Unions – since October 7th.
Ialpa said yesterday that talks between pilots and Aer Lingus broke down last night without agreement.
The pilots’ representative body said Aer Lingus had rejected a cost-reduction package proposed by the pilots which would have amounted to €33 million a year.
Ialpa said this involved pay cuts, pay freezes and a substantial reduction in pilot numbers.
Aer Lingus disputed this. “While some progress was made, the level of savings offered by Ialpa fell significantly below what was required by the company,” the airline said.
“Much of the savings came from reductions in pilot numbers at the very top of the scales. However, the level of pay cuts/pay freezes proposed from those who will stay with the company were insufficient.
“Other employees recognise the financial position of the company and are prepared to act accordingly, Ialpa are not.”
Enda Corneille, Aer Lingus’s corporate affairs director, said agreement had been reached with Impact, which represents cabin crew, Siptu and the craft union.
“There is simply no movement from the pilots,” Mr Corneille added.
Evan Cullen, Ialpa’s president, rejected this and said the union remained open to negotiation. “We are always available for talks subject to our roster duties,” he said.