In March, Aer Lingus said that overall pay for staff was being slashed by 50pc
Aer Lingus employees are to be told next week of additional cuts to pay and working hours as well as redundancies.
The airline’s chief executive, Sean Doyle, told staff in a video message today that the Covid-19 pandemic has had a “crippling” effect on the carrier, which is part of the IAG group that also owns British Airways, Iberia, Vueling and Level.
He said that today, Aer Lingus will carry just 939 passengers. On Friday of this week last year, it carried 18,361.
“As you are all too well aware, we are now in the deepest downturn that the aviation industry has ever experienced,” he said.
Aer Lingus informed staff and unions earlier this month that significant job cuts will be necessary a result of the crisis. It’s believed that as many as 900 of its 4,500 workers would be targeted.
Steep pay cuts have already been implemented. In March, Aer Lingus said that overall pay for staff was being slashed by 50pc.
“Throughout the crisis, we have engaged with all the senior members of the relevant representative bodies,” said Mr Doyle in his message today. “This engagement has been constructive and respectful. However, unfortunately it has not as yet resulted in an agreed way forward.”
“There is now an urgent requirement to make further cost reductions given the decimation in demand for travel in the immediate term, and the uncertainty regarding future travel demand thereafter,” he added.
“The unfortunate reality is that notwithstanding the workforce in its entirety taking a 50pc pay reduction, and the support provided by the temporary wage subsidy scheme, additional cost savings are now urgently needed,” said the chief executive.
He added that the current 50pc pay reductions and working time arrangements will continue until the June 21, but will not be extended for all Aer Lingus worker beyond that date.
“It is no longer sustainable, and a further reduction in working hours and pay up to and including layoffs in some areas of the business is required and will now have to be implemented,” said Mr Doyle.
“We will also now begin to implement the structural change that is required within the organisation,” he added. “I appreciate that this will be very difficult for colleagues across the business, but I assure you that it is a critical requirement.”
IAG, whose chief executive is Willie Walsh, acquired Aer Lingus in 2015 for €1.3bn and invested heavily in the Irish airline, expanding its route network to North America.
Dublin-based airline Cityjet, which is in examinership, has also told unions that it’s seeking as many as 700 layoffs across Europe, with 276 in Ireland and the UK affected. It employed a total of 1,175 before the crisis.
The DAA, which operates Dublin and Cork Airports, warned staff this week that it will also have to make significant job cuts. It’s likely to make as many as 1,000 of its workers redundant due to the collapse in air travel.
THE UK's Stobart Group, which owns Dublin-based Stobart Air, has taken more than a £40m (€45m) hit on the value of an agreement it inked in 2014 to sell the Stobart brand name and designs to the Eddie Stobart Logistics company.