Aer Lingus to review rescue plan

The board of Aer Lingus is due to meet today to review the second part of its rescue plan in light of a continuing decline in the global aviation industry.

The company has already warned of major cutbacks involving the loss of 1,700 jobs.

The Minister for Public Enterprise, Mary O’Rourke, has warned the airline that changes must implemented if it is to fly beyond the New Year.

The board will also discuss how to best forward its case for state aid should the EU permit such an intervention.

Minister O’Rourke will travel to Brussels on Monday to hold talks with her EU counterparts on the worldwide crisis facing airlines.

She will point to Ireland’s strategic need for an airline in her bid for EU permission to grant state aid to the ailing airline.

However, even if aid is granted, the Minister has made it clear that much depends on how Aer Lingus itself responds to what she terms ‘an evolving situation.’