GUARDED PLEDGE TO DELL'S IRISH OPERATIONS - Dell chief executive Kevin Rollins has said that the company's Irish manufacturing operations in Limerick will continue to 'meet the needs of customers in parts of Europe' but that an Eastern European manufacturing facility was essential to be 'close to customers' in emerging markets, says the Irish Times. Speaking at Dell's annual technology day in New York yesterday, Mr Rollins did not provide any further detail on the likely location of the new European factory or how it might affect employment levels in Limerick. Dell employs 4,500 people in Ireland, primarily in manufacturing in Limerick. It also has a sales and marketing operation in Cherrywood, Co Dublin.'Our relationship with Ireland has been exceptional and we appreciate the support we have received from the Irish Government and our partners,' said Mr Rollins. 'However, there are other markets we need to get into. We have to be close to customers in those markets and that is best done by having multiple sites in Europe,' he added.
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MANNION ON COURSE FOR PACKAGE OF €967,500 - Dermot Mannion, the Aer Lingus chief executive, is in line for a €380,000 bonus when the company floats later this month, reports the Irish Independent. This is equivalent to one year's basic pay for the airline executive, who will also be entitled to separate performance-rated bonus of 25% of basic salary, and a 25% annual contribution to his basic salary. Allowing for other benefits, the former Emirates executive is in line to earn €967,500 this year. The information is included in the company's prospectus which was published yesterday. The prospectus gives the company a valuation range of between €601m and €772m. The company intends to raise a further €534m which will be used to plug a pensions deficit and fund fleet expansion.
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TELECOM ITALIA MOVE SURPRISES PRODI - Romano Prodi, Italy's prime minister, on Tuesday expressed shock at Telecom Italia's plans for a radical restructure and raised the possibility of government action to alter or unwind the company's strategy, writes the Financial Times. Mr Prodi, whose government has already this year taken steps to stop the privatised toll road operator, merging with a Spanish company, said he had met Telecom Italia's chairman recently and been given no indication of the extent of what was planned. Marco Tronchetti Provera, TI chairman, this week that the company would be split into three, in a move that could later see the sale of its network and its mobile business. The restructuring is to enable the company to focus on broadband and media services and is a U-turn from moves made less than two years ago to integrate the fixed-line and mobile businesses. Telecom Italia stressed that no decision had been taken yet to sell any assets.
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AIRPORT SECURITY SCARE COSTS BAA £13m - AND CLIMBING - BAA, Britain's biggest airport operator, has disclosed that last month's security crisis cost it £13m, reports the Guardian. The owner of airports including Heathrow, Gatwick and Stansted said it cancelled about 2,000 flights during August as new security measures were ordered over the alleged plot to blow up transatlantic airliners. The main financial cost came from lost landing and takeoff fees, which airlines are charged. Depleted shopping revenues were the next largest financial blow, as United States authorities banned liquids from being carried onto inbound flights, and hand luggage restrictions affected sales at airport shops. The £13m figure also included overtime for staff drafted into cope with the new security guidelines, the cost of erecting spillover marquees for stranded passengers and the investment in posters advertising the new restrictions.
