Key points of company's savings plan
AER Lingus wants to make annual savings of €74m through cuts.
There are three main elements: 1. Shaving €14m off advertising, distribution costs, airport charges and professional fees. 2. Taking €10m off the cost of the long-haul fleet by reducing it from nine planes to eight. 3. Securing €50m in savings through staff and related costs. The airline plans to achieve this by:
- Outsourcing 1,500 jobs -- in ground operations catering and cargo at Dublin Airport, ground operations in Cork and ground operations and cargo in Shannon.
- Closing cabin-crew bases at Shannon and Heathrow; offering a limited amount of redeployment in Dublin.
- All services from New York, Boston, and San Francisco to be crewed by US-based cabin crew.
- A pay freeze until at least the end of 2009.
- Moving all head office and support staff on to merit and performance-based contracts.
- Move head office to a smaller open-plan facility.