Pressure on airline chief Walsh to resign

Harry McGee, Political Editor

Mr Walsh met with interim chairman John Sharman yesterday to outline his future plans and to respond to reports that he and two senior colleagues plan to set up a low-cost airline that may compete with Aer Lingus on both short and long-haul routes.

It came as three influential backbench Fianna Fáil TDs from North Dublin called for his resignation if the reports are borne out.

Jim Glennon, Pat Carey and Sean Haughey separately contended that, if the departing top management team are planning to set up an airline that will be in competition with Aer Lingus, it creates a conflict of interest that poses serious questions about them remaining in their jobs until May, when they are due to step down.

If the reports are true, said the deputies, the managers should resign forthwith.

In particular, Mr Glennon homed in on reports that the new venture may offer cheap flights to long-haul destinations like Bangkok, Dubai and South Africa, notwithstanding an apparent rejection of a similar long-haul strategy by Aer Lingus’ management team.

“If these reports are true the absence of a long-haul strategy on the part of Aer Lingus comes very much into question when we have this proposed strategy for long-haul on the part of the new venture,” he said.

The Department of Transport said yesterday that questions over Mr Walsh’s future with the airline was a matter for the board, though the minister continues to monitor the situation.

However, the Irish Examiner understands from other reliable sources that, while the Transport Minister is curtailed when it comes to intervening, the public comments from back bench FF TDs has considerably “upped the ante” and will assist the Government in its efforts to clarify the issues involved.

For his part, Mr Carey said that, now that the three executives were planning an early exit strategy, “it would be in everybody’s interest that they leave forthwith”.

He said that there was also a strong case for a condition that would prevent the executives becoming involved with a direct competitor for a suitable period after their departure from Aer Lingus.

Mr Haughey said the Transport Minister should seek their resignations immediately, if it is their active intention to set up a rival.