180 employees at the aircraft repair and maintenance company Lufthansa Technik are facing redundancy following the announcement that it is to be acquired by the Atlantic Aviation Group, also based at Shannon.
The acquisition will secure 300 jobs at Lufthansa Technik, but the company employs 485 people. In a statement, the company said over 180 of the workforce are at risk of redundancy.
The company had been undergoing a review of its operations as a result of the devastating impact of Covid on the airline business, and consequently on the airline repair, maintenance and overhaul business.
The CEO of Lufthansa Technik, Pat Shine, said: "The severe impact of the Covid-19 pandemic led to an extensive strategic review of the business to determine its future.
"Every option was explored, the priority being to protect the maximum number of jobs and the specialist experience of the LTSL workforce. The sale of LTSL to AAG, a company that understands our business and has a strategy for growth through acquisition, presented itself as the most viable solution to minimise job losses."
Consultations are to begin with employees representatives about the impact on affected employees, but it is expected to affect roles in management, production, administration and support.
The Atlantic Aviation group had announced earlier it was to take over the Lufthansa Technik firm at Shannon and secure 300 jobs there. It said the acquisition positions it to continue its growth trajectory and to avail of the opportunities provided by the post pandemic rebound in international aviation.
The addition of 300 employees to the group will bring its workforce to approximately 740 people across sites in Shannon and Brize Norton in the UK.
The purchase by AAG of the Lufthansa Technik group will make it the largest MRO in Ireland, and it says it will put the business on track to become one of the largest independent MRO's in Europe.
Shane O’Neill, Chief Executive of AAG said they were proud to secure approximately 300 jobs for the region—a majority of roles from the outgoing Lufthansa Technik Shannon business.
"We look forward to welcoming this highly skilled team to our operations and adding to our incredibly talented and experienced team at AAG", he said.
Clare Independent TD Michael McNamara said clarification is needed on the future of all existing full-time jobs at Lufthansa Technik Shannon, as well as the retention of the two aviation hangars used by the operation.
Deputy McNamara praised the employees of Lufthansa Technik who "have played a key role in ensuring the future of the operation through their engagement with management and SIPTU over the past year.
"This included staff staggering work shifts with staff taking paid leave by availing of days built up over the years.
"While the majority of contract staff were released in the last year, particularly at the beginning of the pandemic, management at the company has continued to engage with worker's representatives from SIPTU. Following on from today's announcement, it is important now that clarity is provided on all full-time positions at the company," he said.