Today in the press

Monday 28 July 2014 10.00
Today in the press
Today in the press

AER LINGUS EXECUTIVE STARTS COURT CASE OVER DISMISSAL – The Irish Times reports that a senior Aer Lingus executive has begun court action to prevent his removal from his position, following an alleged dispute with other senior executives at the airline.

The row is the latest signal of upheaval among the most senior leaders of Aer Lingus, which is also losing, or has recently lost, its chief executive, chief financial officer and head of human resources.

Micheal Gannon, director of product and brand development, will this week ask the High Court to give him an injunction preventing his removal. It is understood that the high-level management row is related to disagreements over operational matters and does not centre on allegations of misconduct by any individual.

Aer Lingus declined to comment over the weekend when asked questions about the dispute involving Mr Gannon, including the reasons for his attempted removal and the impact the case could have on the airline’s operations.

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LACK OF OVERSIGHT ‘REMEDIED’ – The Irish Examiner reports on a Central Bank paper, which says that the macroeconomic imbalances that wrecked the Irish economy from 2008 onwards would have been flagged as needing urgent attention in 2005 under existing procedures.

In a new paper produced by Central Bank economists Ronan Hickey and Linda Kane, it noted that the economic governance rules in place before the crisis erupted were hopelessly inadequate.

The Stability & Growth Pact did not monitor macroeconomic imbalances that were in the years leading up to 2007 becoming a huge problem in countries such as Ireland.

This country experienced a massive surge in credit and house price inflation while at the same time there was a steep losses in competitiveness.

Even though Ireland’s fiscal position met the Stability & Growth Pact criteria and unemployment was at the lowest level in the history of the State, as the imbalances blew up, this would cause a surge in public indebtedness and unemployment.

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PERMANANT TSB CUSTOMERS HIT BY CARD GLITCH – Permanent TSB customers were unable to use their debit cards in shops and ATMs yesterday afternoon because of a technical glitch, according to The Irish Independent.

Customers complained of not being able to use their cards to make purchases in shops and were left temporarily empty-pocketed while they waited for a major system issue to be resolved.

A spokesman for Permanent TSB said the system fault was identified and resolved within one hour before lunchtime yesterday. He apologised to customers inconvenienced by the outage.

The bank said that the failure had been caused by what it described as a "major issue" with one of its servers, which affected ATMs and point-of-sale machines.

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GSK CHIEF FLOATS BREAK-UP OPTION – The Financial Times reports that the chief executive of GlaxoSmithKline has opened the possibility of the group being broken up in the future.

Andrew Witty said GSK had the option to spin off its consumer healthcare business if a time came when it offered more value as a standalone company.

He made clear there were no such plans in the near term but, by raising it as a possibility, he signalled his openness to further restructuring at a time of mounting challenges for the company.

A profit warning last week increased pressure on Mr Witty after a torrid year in which GSK has been mired in a damaging Chinese bribery scandal.

However, in an interview with The Financial Times, he declared confidence that his strategy was on track to delivery fresh growth.