Hundreds of jobs at risk in Aer Lingus overhaul

AER LINGUS has admitted its decision to axe 25% of its winter transatlantic schedule is only a “small step” in a complete overhaul of the airline that could see hundreds of jobs axed.

With the airline going through what it says is its most difficult trading period in its 73-year history, Aer Lingus has decided to suspend Shannon flights to Chicago from September 1 and services from Dublin to Washington and San Francisco from October 25.

It said it had to act because the airline’s yields had been declining in exceptionally poor market conditions and long-haul average fares fell 19% in the first quarter of 2009.

The airline’s commercial director Enda Corneille said the Shannon/New York service had “got a stay of execution” because of Delta Airlines’ decision to stop that route. However, the four times a week service remains under “close review”.

Mr Corneille would not confirm how much money will be saved as part of yesterday’s announcement, nor the number of its 4,500 staff who will be affected.

“We are also not giving any indication on the precise number or size of the surplus of the staff that this will create.

“We have indicated to the market that we are in the middle of a very significant review on the scale and shape of Aer Lingus for the next 10 years,” he said.

“Today’s announcement is only a small first step of that [review]. There is much more coming down the tracks and it will be rolled out when it is ready, but it is not ready yet. When ready, there will be a consultation process with the unions.”

The decision to pull key Shannon flights has, unsurprisingly, attracted much criticism from tourism and business groups in the mid-west.

However, Aer Lingus chairman Colm Barrington said his company had to act to ensure its own survival.

“We will operate services where people want to buy them. There has not been huge outgoing traffic out of Shannon and there is no doubt Aer Lingus has lost a lot of money in Shannon over the last 10 years.

“It has only made money there in two of the last 10 years. It loses money there every winter.

“We have been a loyal user of Shannon,” he said.