Business Irish

Friday 29 August 2014

Aer Lingus seeks 100 redundancies

Caitlin McBride

Published 25/04/2013 | 08:09

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Aer Lingus is seeking 100 voluntary redundancies
Aer Lingus is seeking 100 voluntary redundancies
Aer Lingus CEO Christoph Mueller
Aer Lingus CEO Christoph Mueller

The airline also plans to absorb short haul flights for major European airlines.

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Aer Lingus is seeking 100 voluntary redundancies as part of an overall cost-analysis project, as it announced a rise in revenue over the first three months of 2013.

The airline made the announcements in its interim management statement today indicating that the company delivered an increase in revenue of 3.3%, up to €259.7 million, from €251.5 million in the first quarter of last year.

According to Aer Lingus, the increase  highlights the need for even further cost-cutting within the organisation.

The airline reported an operating loss before exceptional items of €45.5m for the three months from January to March, an increase of the €36.1m in comparison to the same time last year.

In addition, they plan to absorb short haul flights for major European airlines, including Virgin Atlantic Airways Ltd and Nova Airlines AB of Sweden in a bid to generate revenue.

Expanding the airline’s Boeing 757s are also under review.

Aer Lingus CEO Christoph Mueller explained: “This is one of the markets we want to focus on, whether under our own brand, a Virgin Atlantic-type of model or simply as a white-tail,” Mueller said, referring to the industry term for an unbranded aircraft. The wet-lease model could best be developed at Heathrow, which lost a neutral feeder carrier with the takeover last year of BMI by British Airways (IAG).”

Mr Mueller added that they are seeking 100 redundancies in order to further curb costs.

“While we had expected increased operating costs in the first quarter, the Q1 performance highlights the need to continue to review our cost base to protect profitability for the rest of 2013 and beyond. In line with the ongoing requirement to streamline our organisation structure and identify cost saving initiatives, we are launching a voluntary severance programme, with a goal of reducing headcount by approximately 100 staff by year end.”

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