Aer Lingus seeking cut in share capital

A High Court judge has expressed concern about aspects of an application by Aer Lingus Group plc for approval for a €500m share capital reduction in a situation where there is a €700m shortfall in the Aer Lingus pension fund.

After Mr Justice Peter Kelly raised the pension deficit in court yesterday, he was told the matter may be the subject of litigation.

Paul Sreenan SC, for Aer Lingus, said the company took the view it had met all its obligations concerning payments, but it anticipated there could be litigation or “industrial relations problems”. There was no contingency provided for in relation to any such litigation, he said.