Airline talks - Reform comes very slowly

YESTERDAY, as SIPTU took what may be one of its final stands in its rearguard action against modernisation at Aer Lingus, the announcement of a merger of two of the world’s biggest airlines underlined the challenges facing that industry.

America’s Delta and Northwest became partners because they could not survive in isolation. America’s airline industry lost a staggering $35bn in the five years to 2006. Those losses were incurred before oil prices soared — jet fuel prices jumped 90% in the past year.

Aer Lingus is buying new aircraft and unit costs have been reduced to a level that bares realistic comparison with some of its competitors.