Aer Lingus chief to stay at helm

AER LINGUS chief executive Willie Walsh says he will stay on in his job even if the government decides not to back his plans for an outside investor to come on board.

Mr Walsh, who has been in charge since October 2001, said he would continue to lead the airline even if the Cabinet committee investigating whether to seek outside investment, including a proposal by the chief executive and other top management, decided not to privatise the airline.

“I’m staying. I’m committed to Aer Lingus. I’ve worked here for 25 years,” he told RTÉ’s Morning Ireland yesterday. “I have made it clear since I have taken over that the business issues are independent of ownership.

“Our determination is to make Aer Lingus profitable, make Aer Lingus viable and to expand Aer Lingus for the benefit for Irish tourists and consumers.”

Mr Walsh has defended management’s plans to position the carrier as a low fares airline, which will see the removal of business class seats from part of its short haul services.

Last month, Mr Walsh published details of the company’s three year business plans, which will see the company shed 1,325 jobs and close part of its cargo business.

“The business plan that Aer Lingus are now implementing is a plan approved by the board. There was considerable discussion over the last couple of months and the board approved the plan in July.

“The issue really is all aspects of our business have to be viable and the short haul cargo is really insignificant in the context of our business and insignificant in the context of cargo in Ireland.”

He said the cost base had to come down if the airline was to continue to make profits. Mr Walsh told the station that it was also reviewing its membership of the One World airline alliance. This allows Aer Lingus customers to book seats on flights by other member airlines to destinations not on the Irish carrier’s network.

“We are not pulling out of the One World Alliance. Our membership of One World is under review, as are all aspects our business.”

Talks between the airline and unions are expected to continue next week following the appointment of a facilitator.

Kevin Foley, the new director of conciliation services at the Labour Relations Commission has agreed to take this role.

SIPTU national industrial secretary Michael Halpenny said that Mr Foley was “well equipped to deal in a constructive and creative fashion with the issues that management and unions face.”

“The talks’ process is time-lined to conclude by the middle of October and it will pose a very difficult challenge for all parties, but especially our members at the airline. SIPTU will be doing all it can to assist Mr Foley in reaching a satisfactory outcome,” Mr Halpenny said.