Calls for aviation sector rescue package as thousands set to lose jobs

Calls for a rescue package for the aviation industry in Ireland are becoming louder as Ryanair and Aer Lingus look to shed thousands of jobs between them.

The union representing workers in all Irish-based airlines, airports and authorities, Fórsa, said the weakened industry could be "unrecognisable" by the end of the year, with regional airports "particularly vulnerable".

Ryanair boss Michael O'Leary said it could see up to 3,000 jobs losses, mostly pilots and cabin crew, as the airline would take up to three years to recover.

Aer Lingus is also discussing with union representatives up to 900 layoffs, or 20% of its workforce, due to the pandemic.

Aer Lingus said it would issue proposals for a voluntary redundancy scheme, and that it would also seek changes to current arrangements for pay, working time and work practices, but no specifics were outlined, according to union officials.

Fórsa said a Government indication that its wage subsidy scheme would remain in place until mid-June was the first step in underpinning the sector, reducing pressure on aviation employers to downsize.

Fórsa’s Angela Kirk said: “The unions recognise that the entire aviation industry is facing its biggest crisis in a lifetime, and we will work with aviation employers to ensure the maximum possible protection to jobs, incomes, and an industry that has served the people of Ireland well.

“We’ve sought that pay arrangements currently in place be extended until June 21 as a minimum.

We pointed out that the wage subsidy scheme was of considerable financial benefit to the company and the extension of the current arrangements until that date is affordable.

Fórsa said it expected to engage with Ryanair in the coming days.

The slashing of fares by airlines initially in order to entice passengers back flying, as predicted by Mr O'Leary, will be a double-edged sword, according to Irish tourism bosses.

Chief executive of the Irish Tourism Industry Confederation (ITIC), Eoghan O'Mara Walsh, said while "headline-grabbing" minimum fares would turn the heads of consumers initially, it would be cancelled out by less competition from smaller airlines going to the wall.

"Less competition from smaller airlines means the bigger ones will have it all to themselves, and that means setting larger fares in the longer-term, which consumers will have to pay to fly. That will cancel out any benefits consumers may initially see," he said.

The International Air Transport Association (IATA) said global passenger traffic results for March showed demand, as measured in total revenue passenger kilometres, plummeted 53% compared to a year ago.

It was the largest decline in recent history, the IATA said. Load factor, which measures the number of seats taken up by passengers, sank more than 21% to just 60%.

"Demand was at the same level it was in 2006 but we have the fleets and employees for double that,” said Alexandre de Juniac, IATA’s Director General and CEO.