Talks force Aer Lingus to delay results publication

ONGOING talks between Aer Lingus management and staff has forced the company to postpone the publication of its preliminary results which were due to be released today.

The airline said it is “determined” to achieve its aim of saving €97 million even after the cost-cutting plan was rejected by some workers.

“These savings are vital to realign the cost base of the company and position Aer Lingus for a successful future,” the airline said in a statement yesterday.

Given that talks with unions and staff are continuing the company are instead scheduled to release a “brief” trading statement today instead of a full earnings report.

Aer Lingus said the preliminary results contained a restructuring charge that is consistent with the agreements reached with unions and recommended by them to their members, in relation to the company’s cost savings programme which is now in doubt.

Last night, the Unite trade union announced that 83% of craft workers at Aer Lingus voted to accept the airline's proposed restructuring plan. That followed Friday’s rejection of the plan by cabin crew.

Aer Lingus, which has fended off two hostile bids by rival Ryanair, wants to reduce its annual operating costs by €97m by shedding up to a fifth of staff.

Goodbody expects Aer Lingus to announce a 2009 operating loss of €87.7m. The company’s board of directors will meet today to formally approve the steps that will now be taken to achieve the cost savings.

Meanwhile, Aer Lingus announced the appointment of Juergen Krins as programme manager for the Greenfield Transformation Programme, reporting to Andrew Macfarlane. Mr Krins has previously worked with four other airlines.

His role will focus on the delivery of the airline’s complex transformation programme.