10-Mar-2010 1:13 PM

Aer Lingus to go ahead with cost cutting plan; new plan to be developed for cabin crew

Aer Lingus formally approved (09-Mar-2010) the steps that will be taken by the carrier to achieve the required savings under its EUR97 million cost reduction programme.

  • Cost cutting plan: The carrier stated that given the support of four out of five union groups, implementation of the 1,065 compulsory redundancies contemplated in the so called 'Plan B' would be unfair. Therefore Aer Lingus intends to promptly proceed with the implementation of those elements of the cost reduction programme that were agreed with those four union groups. The plans will include 440 voluntary redundancies and a 10% pay cut (BreakingNews.ie/Business World, 09-Mar-2010);
  • Cabin crew: a new solution will incorporate redundancies, reduced salaries, new working conditions and the de-layering of the cabin crew organisation. CEO, Christoph Mueller, stated cabin crew will not receive a “sweatheart deal” and reportedly plans to implement approximately 230 compulsory redundancies among cabin crew (Bloomberg, 09-Mar-2010). Union, IMPACT, will meet the carrier on 10-Mar-2010, with a new deal to commence “within days”. [more]

Aer Lingus: “One thing is for sure, there will be no sweetheart deal with cabin, I believe that is my understanding of fairness. Someone who votes no to a proposition should not get an easier way out than the ones who have voted in favour. Number two, retaliation is not our business; it will have no element of that nature. And number three there will be no re-balloting,” Christoph Mueller, CEO. Source: BreakingNews.ie, 09-Mar-2010.

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