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Aer Lingus condsidering compulsory layoffs if unable to meet cost cut targets

19-Nov-2009 11:56 AM

Aer Lingus Board confirmed it may pursue compulsory redundancies at the carrier if a deal is not reached with unions over cost cuts at the Labour Relations Commission by 30-Nov-2009 (RTE News, 18-Nov-2009). The carrier is attempting to cut costs by EUR97 million, much of which is sought through reductions to labour costs, including 676 job cuts. If the carrier fails to meet its saving target it plans to cut capacity further, due to its “uneconomic cost base” (Reuters, 18-Nov-2009). The board also noted that the operating environment for Aer Lingus and airlines generally remains “extremely challenging”.