Ryanair proposals voted down as Dempsey passes poison chalice

Ryanair said today that it regretted the decision by the board of Aer Lingus to reject it's cost saving proposals which would have reduced director' fees at the airline. Ryanair's director of communications Stephen McNamara said that today's rejection 'leaves the Board of Aer Lingus and the Minister for Transport with no credibility when they begin talking to staff and other suppliers over the coming months about the cost cuts needed to restore Aer Lingus to profitability'.

Ryanair believes that Aer Lingus hasn't made any inroads in reducing labour cost at the airline in spite of a cost saving program which was implemented following the Q1 drop in revenue of 16%.

Average cost per member of staff at Aer Lingus, excluding directors was €82,000 in 2008 compared to €50,000 at Ryanair and Aer Lingus carried 2,500 passengers per member of staff compared to 9,700 at Ryanair.

Ryanair had proposed a significant cut in directors' fees at Aer Lingus to be voted at during today's AGM. Last weekend, Ryanir's chief executive Michael O'Leary wrote to the Minister for Transport Noel Demspey informing him that Ryanair had signed it's proxy giving him the majority vote at today's AGM. Earlier this week Minister Dempsey 'declined' the proxy. The 'Irish Times' reported today that Julie O'Neill the secretary general of the Department of Transport had written to the Aer Lingus Chairman Colm Barrington informing him that the Minister had appointed him as his proxy, thus passing the poison chalice.