Monday 20 October 2014

Carrier aims to cut costs with airport investment

Published 31/03/2014 | 02:30

Sabina O’Neill, of Aer Lingus regional cabin crew. Photo: Diane Cusack
Sabina O’Neill, of Aer Lingus regional cabin crew. Photo: Diane Cusack
Aer Lingus planes at Dublin Airport, Dublin.

Aer Lingus is examining ways of participating in infrastructural investment and development at Dublin Airport, according to the airline.

A spokesman for the carrier declined to say what projects are being looked at or their expected cost. The airline is understood to be working with a third party to identify how it can engage with the airport this year.

In its annual report, Aer Lingus confirmed it was looking at infrastructure options so that its cost position can be improved.

Headed by chief executive Christoph Mueller, Aer Lingus announced earlier this year that it was proceeding with a new €30m two-year cost-cutting plan, known as 'CORE'.

It follows on the 'Greenfield' cost-cutting programme that was introduced by Mr Mueller after he was named chief executive in 2009 and which has delivered over €100m in annual savings at the airline.

The company has also agreed revised payment arrangements with certain large suppliers in return for improvements in other commercial terms.

Aer Lingus is also due to pay an additional €6.2m this year to a Cayman Islands-based company called Propius Holdings, which is a joint venture with Stobart Air, formerly known as Aer Arann.

Stobart and Aer Lingus entered into an agreement last year to establish the venture in order to acquire eight new aircraft to be used for the Aer Lingus regional service. That Aer Lingus regional service is operated under a 10-year franchise agreement by Stobart Air. Six of the eight new aircraft have already been delivered. The remaining two will be in service by the summer.

Aer Lingus will relaunch its Dublin-San Francisco route this Wednesday, and is also starting a new service between the capital and Toronto in the middle of April.

Irish Independent

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