Aer Lingus has presented its restructuring plan to the Minister for Public Enterprise in advance of her meeting with European transport ministers in Luxembourg tomorrow. Mary O'Rourke is expected to seek EU support for a guaranteed loan to help the airline out of its current crisis.
Yesterday, the Taoiseach said that the Government would continue to talk to the European Commission about state assistance for the airline.
Private airlines like Ryanair are opposing all state aid to national carriers. The Government's case is expected to stress the US Government's $15billion dollar aid package to its airline industry, which has put Aer Lingus at a competitive disadvantage.
The details of the restructuring plan will be closely analysed by Aer Lingus unions over the coming days. One union official said that the thrust of the plan contains no surprises: the company is still looking to get rid of 2,500 jobs.
Earlier, Aer Lingus workers told the Fine Gael leader that they fear up to half of the company's 700 jobs could go at Shannon. They are also concerned that the airport could be seriously downgraded because of the financial crisis facing the airline.
Michael Noonan said that the board of the company should be reconstituted so that political appointees are taken off and replaced by people of competence.
Mr Noonan said that he believes the airline could be given a loan to help it through the current financial difficulties. He also believes the airline should be split in two, to deal with its transatlantic and European business separately.
He has called on Minister O'Rourke to reconstitute the board of the company. If the staff are to face massive redundancies, then it must be lead by a competent board, Mr Noonan said.
Reports this morning said job losses at Aer Lingus could exceed the 2,500 permanent posts and 700 temporary positions estimated by the company. Sources say the company is underestimating cutbacks needed to maintain the national airline's commercial viability.
