Aer Lingus cuts seat width to add UK capacity

Aer Lingus is adding capacity to the key Dublin-Heathrow route by altering the cabin layouts of its six Airbus A321 aircraft, writes Emmet Oliver

The airline is replacing its wider seats with narrower leather seating which should increase the capacity on each aircraft by almost 9 per cent - from 193 to 212. This should reduce the cost per seat ratio on each aircraft, a key measure in the airline industry.

The move comes as Ryanair adds significant new capacity out of Dublin Airport, including services to London-Stansted.

Aer Lingus has 27 short-haul aircraft at present, all Airbuses. Getting maximum capacity from this fleet is essential for the airline as it battles competition from the likes of Ryanair, British Midland and CityJet. The airline recently announced a decision to end its Liverpool service and concentrate instead on Manchester.

But with a flotation scheduled for this summer, the airline is anxious to protect its share on Dublin-Heathrow, one of the busiest routes in European air travel.

Chief executive Dermot Mannion wants to at least maintain the airline's levels of short-haul traffic, although he has often conceded that future growth is more likely to come from new long haul routes. The airline begins its first non-US long haul route next month from Dublin to Dubai.

Aer Lingus is considering its options on its long-haul fleet. As a temporary measure, it expects in 2007 to take two new Airbus A330 long-haul aircraft which will serve new US routes. The routes have not been chosen yet, but it is understood San Francisco and Philadelphia are being considered.

But a wider long-haul deal will require significant new funds, most likely generated by a flotation. Among the aircraft it might consider for this purpose is Boeing's 787 Dreamliner. Yesterday, Boeing said airlines were choosing to cram more seats into this aircraft than it expected.

Senior Boeing sales executive Randy Baseler said seating in the 787-9 version of the aircraft would rise to about 280 from 259 if airlines switched to nine seats per row in economy rather than eight as Boeing had expected.

Meanwhile, Siptu is resisting moves towards a flotation of the airline. Siptu said yesterday: "The Government appears to be getting nearer to selling a majority share in Aer Lingus. Siptu's position has not changed."

The union once again voiced its support for the idea of a State holding company. "The 20 per cent higher operating profits expected at Aer Lingus in the 2005 accounts reinforce the case for keeping the company in State ownership and creating a State holding company to finance the long-term development of major commercial semi-States such as Aer Lingus, ESB and Bord Gáis."

The Cabinet is expected to make a final decision on a flotation within weeks. Preparatory work has been done by UBS and AIB Capital Markets, but Government sanction is required for a formal sale.