Aer Lingus says it is targeting significant unit cost reductions in twelve key areas across the organisation.
In a stock exchange announcement, the airline says its board believes that these reductions will deliver significant shareholder value.
The airline says it will continue to focus on cost and productivity as it has since 2001.
Staff at the airline were briefed this afternoon on the extent of management's cost cutting plans.
Aer Lingus management plan to bring in new contracts for employees which they say will be, in their words, in line with market standards. They also want to simplify grading structures and rationalise overtime and shift payments for existing staff.
Aer Lingus says it will also seek more flexibility from staff in terms of their working hours and functions. They will be seeking improved productivity from air crews flying long haul routes. It also plans to renegotiate its fuel and maintenance contracts.
The airline says it is considering new bases outside Ireland and that it plans to raise an additional €25m next year from introducing baggage charges, advance seat selection for passengers and other initiatives.
This evening SIPTU said that the proposals seemed excessive and it would seek further clarification.
Today's announcement also urges shareholders to reject Ryanair's offer for the company. It says the Ryanair offer fails to adequately value the intrinsic value of the airline and points out that it is conditional on merger clearance.
'A hostile takeover at a derisory price which will create a Ryanair monopoly in Ireland does not make sense,' commented Aer Lingus Chairman John Sharman in today's document. 'Aer Lingus shareholders should reject the Ryanair offer,' he added.
'Aer Lingus has tremendous opportunities ahead to build on the strong platform we have put in place,' said Aer Lingus CEO Dermot Mannion. 'We are currently working with our employees to continue the aggressive pursuit of business efficiencies which has characterised Aer Lingus since 2001,' he added.
