Aer Lingus chief denies any conflict of interest

Harry McGee, Political Editor

Mr Walsh told the Irish Examiner yesterday that he had made no decision about what he would do when he leaves Aer Lingus at the end of this month. He said that, while he had received over 40 offers since announcing his resignation last November, his focus since then had remained wholly on Aer Lingus. It amounted to a denial that he and the other two departing executives from the management team, Seamus Kearney and Brian Dunne, were actively contemplating setting up an Irish-based airline that will be in competition with the national airline.

"What I do after I leave Aer Lingus is completely undecided," he said.

"I do not know what I am going to do. My preference, and I have said this publicly before, is to stay in the airline industry. I have had a significant number of offers and will need to begin considering them once I leave Aer Lingus."

When announcing his resignation in November, Mr Walsh said he and his two colleagues would remain with Aer Lingus for six months to facilitate the transition to a new executive management structure.

However, following reports last week that the three were contemplating setting up a rival venture, Mr Walsh met with the airline's interim chairman, John Sharman, on Monday. His anticipated early departure from Aer Lingus was announced yesterday afternoon.

Mr Sharman said yesterday that he accepted assurances given to him by the three executives that no conflict of interest had arisen. He added that, following the conclusion of the arrangements, "the potential for a conflict of interest going forward does not arise".

Mr Walsh yesterday stood over his loyalty to the airline. "My track record speaks for itself. I have worked for Aer Lingus for 25 years. I dedicated myself to (the airline).

"I am not going to say that I made no mistakes, but you can point to a lot more successes than failures."

He said that Aer Lingus was now one of the strongest airlines in the world with profits for 2004 expected to be well in excess of E100 million.

"We have record profits, we have record operating margins and the network has been significantly expanded," he said.

Mr Walsh outlined his reasons for departing.

"I was upfront in everything we did. I had to take stock and see what we had done so far and what was left for us to do. It was an appropriate time to leave."

The Department of Transport confirmed yesterday that the chief executive post will be advertised on Friday.

Transport Minister Martin Cullen said he looked forward to the hiring of a new incumbent "in the coming weeks".