19-Oct-2009 1:10 PM

Irish Transport Minister states Aer Lingus must go ahead with its cost cutting plans

Irish Transport Minister, Noel Dempsey, stated Aer Lingus must proceed with its cost cutting plans in order to survive (Reuters, 18-Oct-2009). The carrier has stated it is now bracing for strike action, following the announcement of plans to cut 676 jobs to cut costs by EUR97 million.

Irish Government: “Aer Lingus is faced with a very fundamental question - survival or a continuation for perhaps maybe two years. I don't think there's any choice any more. There is little doubt in my mind having seen how the cash has been burned up in Aer Lingus over the last 12 months that unless they get the savings of up to EUR100 million, we will not be talking about an Aer Lingus in a few years time…I support the fact that they have to reorganise, they have to change, they have to be able to compete and I would also be very supportive of both sides [management and unions] sitting down, working through those cuts and achieving what they need to achieve,” Noel Dempsey, Transport Minister. Source: Reuters, 18-Oct-2009.

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