Aer Lingus pilot talks break down

By Stephen Rogers

Thursday, December 10, 2009

THE loss of more than 1,000 Aer Lingus jobs now appears unavoidable after last-gasp talks between management and pilots failed to create an agreement.

Another intervention by the National Implementation Body was expected yesterday, but there was little hope that it could find a breakthrough as the sides remained as far apart as ever following yesterday’s 1am talks collapse.

"We offered Aer Lingus €33m in savings every year for the next five years which is the life of the plan," said Evan Cullen, president of the Irish Airline Pilots Association. "That included a 10-15% headcount reduction, a 13-50% pay reduction in some areas and also we offered to address the deficit in our pension scheme. Aer Lingus rejected the offer.

"The reality is that Aer Lingus has deliberately frustrated these talks. They have made an application to Britain to register the aircraft over there. I think the real agenda here is the off-shoring of the Aer Lingus. We have done our best, we have delivered an enormous amount of savings to Aer Lingus. We clearly met the targets that Christoph Mueller gave us in his presentation to pilots in the last few weeks. Now they have moved the goalposts. We were asked for €30m on an annual basis. We have delivered €33m on an annual basis."

However, a spokesman for the airline said that while some progress was made, the level of savings offered by IALPA fell significantly below what was required by the company.

"Much of the savings came from reductions in pilot numbers at the very top of the scales," the spokesman said. "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."

In the absence of an agreement the company has said that, in addition to the 676 job losses, pay cuts and changes in pension arrangements it has already proposed to unions, it will ground a number of aircraft meaning a further 350 or more job losses.

Meanwhile, Aer Lingus chief executive Christoph Mueller has told the Financial Times the airline risks being taken over by its larger rival Ryanair unless employees agree to its cost-saving plans.

"One group of employees is resisting and bringing Aer Lingus closer to a situation where we might lose our independence," he said.

The airline has told unions it expects a bid from Ryanair at any time after the end of next month. In recent weeks Ryanair boss Michael O’Leary told RTÉ Radio one of his goals before leaving the airline was to secure a takeover of Aer Lingus.

Meanwhile, Aer Lingus has announced the resignation of its chief financial officer Sean Coyle.

Mr Coyle, who joined from Ryanair in 2008, has left "by mutual consent to pursue other interests".

This story appeared in the printed version of the Irish Examiner Thursday, December 10, 2009