Airline job cuts will be voluntary

AER Lingus chief executive Willie Walsh said the 102 redundancies being sought from ground-handling staff at Shannon Airport will be voluntary.

Speaking after the announcement of the airline's annual report for 2003, Mr Walsh said the redundancies were being sought as this part of its business in Shannon was dwindling. The ground-handling staff are Aer Lingus employees but carry out work for other airlines.

Mr Walsh said there had been a sharp reduction in its ground-handling business in the past few years as airlines moved to major companies like Servisair, which offer the service for cheaper.

He said the redundancies would be voluntary and workers would receive payments in excess of those taken by workers who left the company under its survival plan in 2001.

Mr Walsh said the airline would have to reduce its workforce even further if it was to be profitable and compete with other carriers.

Management at Aer Lingus and SIPTU, which represents the 102 workers, are due to meet today. Last week the workers balloted for strike action over the decision.

Last year, Aer Lingus cut 369 jobs and an additional 200 have gone so far this year. The airline now employs 4,000 staff, a third fewer than three years ago.

Mr Walsh added that while much work has been done to reduce the airline's high cost base, with €344 million out since 2001 80% of this in non-staff costs more needed to come out.

He said the airline was operating in a very competitive industry and fares were falling, which would reduce revenue and increase the need to keep costs down.

"Fares will come down and that puts pressure on the cost base. We have to become more efficient and examine costs across the company," Mr Walsh said.

He would not say how many more staff would go or how much money the company hoped to save.