Aer Lingus sale sparks fears over job security

THE country’s leading trade union wants reassurances from the Government that Aer Lingus workers will not be adversely affected by the decision to relinquish a major part of the State’s hold on the airline.

Transport Minister Martin Cullen said the Government had agreed “in principle” to sell “a majority shareholding” in Aer Lingus. The Government would, however “retain a significant stake to protect the State’s key strategic interests in the national airline.”

The State currently owns 85.1% of the company, while the staff own the rest through through an Employee Share Ownership Plan (ESOP).

There was immediate speculation last night as to how much the Government would reduce its stake by but Mr Cullen said no decision had been taken.

“The Department of Transport, in partnership with the Department of Finance, is to move to appoint financial advisors to advise Government on the size, type and timing of the sale transaction,” he said.

The sale will allow Aer Lingus to secure crucial private investment for new aircraft, which, in turn, should allow it compete for new routes.

The former chief executive of the airline, Willie Walsh, resigned from Aer Lingus along with two senior executives after the Government last year ruled out a management buy-out by the trio.

It was thought Mr Walsh, now chief executive at British Airways, was deeply frustrated at the Government’s delay in deciding the future of the airline, particularly when the need for private investment to increase the fleet was apparent.

But while Aer Lingus will now be afforded the opportunity to add to its fleet, workers were concerned last night as to how the decision by the Government to sell part of its stake would affect them.

SIPTU national industrial secretary Mick Halpenny said the union would be “seeking assurances and safeguards” for its members working at the airline that “they will not be negatively impacted on by developments”.

Meanwhile, the Labour Party slammed the Government’s decision to reduce its stake.

The party’s transport spokesperson, Roisin Shorthall TD, said the aviation package generally was designed to meet the “political requirements of the two parties in government” rather than the aviation needs of passengers and the country at large.

“Perhaps the most damaging decision of all is the one that has received least attention in recent weeks - the shameful decision to cede control of a majority shareholding in a strategic national asset, Aer Lingus.

“The Labour Party believes that it is essential that Aer Lingus should remain under public control. The high number of direct flights to and from various destinations which Aer Lingus operates has been critical to our tourist industry as well as to foreign investment in key Irish industry.”