Aer Lingus contract deal could cost 1,500 jobs

AER LINGUS yesterday said it is too early to say whether it will reassign its entire maintenance contract from the current operator SR Technics with the likely loss of up to 1,500 jobs.

Last week, SR Technics made a presentation to its staff outlining the challenges faced by the company in the wake of Aer Lingus’s decision to advertise the contract, which accounts for more than 40% of SR Technics’ business.

The workers are understood to have been told if that significant element of its Irish operation was lost, it was likely it would have to close, meaning redundancy for between 1,200 and 1,500 of the workers at the north Dublin plant.

The contract process has already yielded bad news for SR Technics.

Currently it holds all four sections of Aer Lingus’s maintenance business — wheels and brakes, components, base maintenance and line maintenance. Before Christmas it was told it had lost the first two of those sections to competitors.

However, those losses in themselves will not adversely affect head count at SR Technics greatly as there were not many employed in the roles.

“There is no decision made on the other two,” said Aer Lingus commercial director Enda Corneille.

“We have engaged Oliver Wyman, a global procurement consultancy in maintenance service. They have been conducting this tender process since last year.

“Yesterday and today they were intensively engaged in conversation with all the bidders for the base maintenance element.

“During the selection conference each bid is forensically gone through and companies are told where they stand,” said Mr Corneille.

“Bids can be improved. We will be nominating three of the finalists and due diligence will go ahead. There will not be a final decision until the end of February.”

However, it was reported last night that the outcome of the base maintenance may be known by SR Technics as soon as today.

The line maintenance does not come up for review until the end of January.

“As far as Aer Lingus is concerned no decisions have been made.”

SIPTU yesterday met Transport Minister Noel Dempsey to voice its concerns for members working in SR Technics.