Aviation ground handling firm Aviance has confirmed that it will cease its operations at Dublin Airport in March with the loss of 150 jobs.
The British company, which employs a total of 4,500 staff in airports in Britain and Dublin, said a recent review of its operations revealed that its current cost base could not be sustained under the Dublin business model.
In a statement, Aviance said its Dublin operations will cease on 28 March.
It says the closure was partly due to the economic climate, which has had a global impact on the aviation industry.
However, some industry sources suggested that the company, which recognises unions, and has sick pay and pension schemes for its workers, could not compete with companies which offered lower pay and fewer benefits for staff.
Observers also suggest that some airlines are lowering the amounts they are prepared to pay for ground handling in order to offer lower fares.
Aviance spokesperson Colin Higgins said the company was very disappointed.
He said Aviance is now in a 90-day consultation process with staff, who will receive assistance to help them find other roles - though the terms of a redundancy package have not yet been revealed.
Insurer to create 100 Dublin jobs
Separately, 100 high skilled jobs are to be created by insurers Aon Corporation.
The company, which provides risk management services, insurance and reinsurance brokerage and human capital consulting, is to establish a new Global Centre of Excellence in Dublin.
The centre will provide advance research and development technology for its global operations.
Aon said Ireland's location and well educated work force were among the reasons it had decided to base its centre of excellence here.
The company employs 36,000 people worldwide.
It already employs 460 people at its retail and employee benefit operations in Dublin, Limerick, Cork, Mullingar and Belfast.
