Aer Lingus cut Mannion’s pay by 42%
The company’s annual report also showed total pay for the company’s directors dropped to €1.71m from €2.21m in 2007.
Chief financial officer and newly appointed head of short-haul operations Sean Coyle was paid €187,000 in 2008 while company secretary Greg O’Sullivan was paid €138,000, which is significantly less than the €515,000 he received in 2007 after he was moved from the position of finance director in March last year.
Chairman and acting chief executive Colm Barrington was paid €58,000 for his services in the year.
General secretary of Irish Congress of Trade Unions and board member David Begg was paid €41,000 and former chairman John Sharman received €175,000.
The report notes that the weaker demand and currency situations resulted in a 4.6% fall in average fares last year. It said ancillary revenues performed strongly, rising by 37.7% to €149.7m, mainly because of a 28.1% increase in the ancillary spend of each passenger to nearly €15.
Mr Barrington said: “While the current commercial outlook is challenging, Aer Lingus can face it with confidence. We have the brand, the product, the people, the experience, the resolve and the balance sheet strength to weather the current difficult times.”
He said the measures the company has taken will put Aer Lingus in a “strong position to emerge profitably when commercial and financial conditions improve”. Aer Lingus recently reported pre-tax losses of €120m for last year and said it may not make a profit this year.
This compares with a profit of a little more than €124m a year earlier as the airline was hit by a once-off €141m charge for its cost-saving programme in 2008.
The state airline said it may not post a pre-tax profit this year. It is slashing average ticket prices by at least 10% but said it faces a tough year and weakened consumer demand after seeing a sharp fall in bookings since the start of February.
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