Tuesday, September 22, 2009

Aer Lingus chief pulls no punches in assesment

New Aer Lingus chief executive Christoph Mueller has warned the next wave of rationalization at the airline will be more like "an amputation than plastic surgery" and that long haul service between Ireland and the US, especillay those from Shannon are under pressure. In H1 of this year, the airline's transatlantic operations accounted for €60m of the €93m loss. Mueller said that whilst he appreciated that the Ireland - US routes were of 'national importance he said that his airline is not a charity, believing that the Shannon - US routes have survived only due to political pressure from the Irish government.

On taking up his position at Aer Lingus Mueller stated that he thought the chances of survival of the airline were little better than 50-50. The airline's survival plan is due to be outlined during the second half of October once the Lisbon Treaty vote is out of the way so as to avoid complications for the government.


The 'Irish Independent' reports that the airline is set on a collision course with unions over the deficit in it's employee pension fund. The Irish Airlines Superannuation Scheme which covers employees in Aer Lingus, SR Technics and the Dublin Airport Authority has developed a shortfall of €700m of which Aer Lingus accounts for half. Aer Lingus contends that it is not obliged to bridge the gap, a statement which has prompted unions to predict industrial action before Christmas.

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