SIPTU vows to continues opposition to privatisation

SIPTU said last night that it will continue to oppose the privatisation of Aer Lingus.

The union, which represents about 1,800 workers at the carrier, said that the flotation of the airline’s shares on the Dublin and London stock markets will not raise sufficient funds for its expansion plans.

SIPTU also claimed that given the difficulties facing the industry, the value of the airline will be lower than expected.

“Even supporters of privatisation would have to concede that market conditions in the aviation industry are particularly difficult at this time — if your intention is to secure the best possible price for the taxpayer,” the union’s national industrial officer Michael Halpenny said.

“The cost of aviation fuel is extremely volatile. The industry is also suffering from the heightened security situation worldwide, and the open skies agreement — which would give Aer Lingus greater access to airports in the United States — is still unresolved and looks like it won’t be finalised until next year,” he said.

Mr Halpenny urged Taoiseach Bertie Ahern to call off the flotation as the carrier was given away for a “song”.

But Transport Minister Martin Cullen told the Irish Examiner yesterday that unions have nothing to fear from the initial public offering (IPO).

He said the flotation would strengthen the company and that the rights of employees have been guaranteed.

He also said the flotation was the only way to ensure that Aer Lingus could raise enough cash to finance its fleet expansion now and in the future.

There was support for the privatisation of the airline from employers’ group IBEC and the Air Transport Users’ Council (ATUC).

ATUC spokesman Sean Murphy said that if the privatisation had occurred a couple of years ago, as demanded by the then chief executive Willie Walsh, the fleet expansion would have cost €1.5 billion and not the current estimated price of €2bn.

“Aer Lingus has to seize the new opportunities available for low-cost, long-haul flights in markets such as Asia, the Americas and on new routes that will be opened up by the forthcoming EU/US Open Aviation Area Agreement,” he said.

“It can only do this with a supportive shareholder that lets the company seize opportunities as they arise and expand its fleet as and when it needs to.”

Mr Cullen added that he was hopeful of getting the Open Skies agreement finalised soon and he was also discussions about opening direct air services to China, Singapore and Thailand.

It is understood that talks on direct services to China are at an early stage, though bilateral agreements to begin air services to the two other countries are nearing completion.