Fears as aircraft firm loses contract

FEARS were raised of the possibility of further massive job losses last night when an aircraft maintenance firm which employs more than 1,200 people in Ireland confirmed it had lost a big contract.

SR Technics, formerly known as TEAM Aer Lingus, said it had lost a maintenance contract with Gulf Air.

This further loss of a significant contract is an ominous development given that a significant part of the maintenance work is carried out at Dublin Airport.

SR Technics’ workers may face a very uncertain future when the contract is fully terminated in June.

This is a further blow to the Zurich-based company which lost three of its four contracts with Aer Lingus last year.

Apart from the 1,200 directly employed SR Technics, and a significant number of seasonal workers at the company, there are perhaps as many as 5,000 to 10,000 dependent jobs in the wider local economy.

Dublin airport plays a critical role in the local economies of north and west Dublin, and mid-Leinster and is a huge centre of employment.

Even before the recent rapid decline in economic conditions during the past five months, unemployment had risen by up to 40% between October 2007 and September 2008 in local employment offices in the Dublin North East constituency.

A company spokesman declined to say how much the contract was worth, but described Gulf Air as one of its most significant customers.

The spokesman said no decision had been taken to change the company’s operations in Dublin or its other bases in Zurich and Bahrain.