Ahern opens Cabinet rift with attack on airline chiefs

THE widening rift between the Coalition partners over Aer Lingus was exacerbated yesterday when Taoiseach Bertie Ahern launched an attack on the airline’s departing management team.

The Taoiseach, in an outspoken Dáil contribution, severely criticised the airline’s top management - including outgoing chief executive Willie Walsh - for claiming all the credit for the turnaround of the airline after the September 11 atrocity while ignoring the role of the unions.

He also seemed to empathise with union suspicion of Mr Walsh’s management buyout (MBO) proposal earlier this summer.

“The workers and the unions are concerned that the very people they were dealing with as management wanted to sell out to make themselves extremely rich,” he said in his most pointed criticism.

Last night, the Government’s official spokesperson played down the notion of a growing internal crisis. The spokesperson conceded there were differences of views and emphasis among Cabinet members but rejected any suggestion that Aer Lingus had fundamentally split the Coalition.

However, it emerged yesterday that the Cabinet sub-committee established in July to discuss the future of Aer Lingus has not yet met, leaving the Government vulnerable to charges that it has sat on its hands.

The Government countered by saying that intensive individual discussions have taken place between key ministers.

The crucial issue facing the Government is where to source almost e1 billion to renew the airline’s transatlantic fleet. A report last month by Goldman Sachs set out 10 options, including private investment.

Yesterday, Tánaiste Mary Harney reiterated her party’s view that the funds should come from private equity. “The Government should make investments in hospitals and schools and not in airplanes,” she said.

She dismissed suggestions of discord saying there was “no difference” between Transport Minister Martin Cullen and the PDs.

Mr Cullen seemed to support that when he said State investment was the “least likely option”, but Ms Harney’s and Mr Cullen’s comments were in marked contrast to what the Taoiseach said later.

In a clear signal he does not want to cede total control of the airline, he said: “I’m not going to click my fingers for some right-wing economist who believes we should privatise.”

Mr Walsh robustly responded to Mr Ahern’s “agenda”.

“I would reject any suggestion that this was about personal enrichment,” he said in reference to the MBO. “That could not be further from the truth.”

Opposition parties played up the emerging cracks yesterday. Labour leader Pat Rabbitte said: “There is a serious sunder in the Government now. Two clearly opposite positions (have been expressed).”

SIPTU national industrial secretary Michael Halpenny said the Government should focus its efforts on solving the labour relations crisis at the airline rather than debating investment for which there is no real urgency.