Detailed figures on airline aid required

Aer Lingus will have to present detailed figures to the Government if it is to qualify for funding from any potential EU aid package for European airlines, the Minister for Public Enterprise Ms O'Rourke said yesterday.

Speaking after a meeting with unions representing workers in Aer Lingus, the Minister said the issue of EU aid had been "thoroughly explored".

"My point of view is that we need to keep Aer Lingus viable even though it may have to be slimmed down and restructured which it would surely have to do were you to qualify for EU permission," said Ms O'Rourke.

The Minister said the EU would have to take into consideration commitments by the US administration to fund the US airline industry which, she added, would introduce a huge measure of distortion, particularly on transatlantic routes.

"That measure of distortion won't allow any European airline to have a level playing field. Therefore, it's my belief that Europe will look at it case by case, country by country.

But only an airline which has shaped itself up to be a suitable candidate for such permission will, I feel, be eligible to go back to its own Government."

Speaking on RT╔ radio, the Minister said she was awaiting further details from the company today before any final figures could be put on job losses or any potential Government bail-out if the EU permits it. Those details will be presented to the cabinet tomorrow.

But it remains unclear how current plans by Aer Lingus to cut costs by 25 per cent would allow it to qualify for any EU rescue package for European airlines. A spokesman for Aer Lingus said the plan had been drawn up under current EU rules.

Mr Michael Landers of the IMPACT trade union described the meeting with the Minister as positive and said she was sympathetic to the plight of the airline and its workers. He said it was "inconceivable" that US airlines could receive government support without EU airlines being also offered support.

But he said the union accepted that any proposal to provide funding had to be in the context of a survival plan for the airline.

"We're prepared to hear what the company has to say on the subject of job losses. We want to see the exact details of what the company's financial situation is and, in fairness, that information is being made available to trade union advisors and now we have to digest that information, come to a view on it and sit down with the company.. We've had a number of preliminary meetings but we really haven't got down to serious talking yet," said Mr Landers.