Aer Lingus resolves dispute with former chief

AER LINGUS is believed to have paid former chief executive Michael Foley more than €500,000 to settle a long-running legal dispute relating to his dismissal in 2001 on allegations of sexual harassment.

The terms of the settlement were not released by either side.

Mr Foley is believed to have originally sought more than €1 million in compensation for loss of office, damage to his reputation and costs.

Both sides yesterday welcomed the conclusion of the dispute.

"A very satisfactory solution has been reached in this matter which allows himself and his family to move forward from what has been a very difficult chapter in their lives," a statement issued on behalf of Mr Foley said.

Aer Lingus said it was "very pleased" that the dispute had been resolved. "Aer Lingus would like to take this opportunity to wish Mr Foley every success for the future," it added in a statement.

Mr Foley, who will be 60 next month, has lived in the US since his departure from Aer Lingus and is believed to be working as a business consultant.

A former senior executive with Heineken in the US, Mr Foley is thought to own a property in New York state. He is understood to have worked in Florida in recent years for a business owned by his wife, Nóirín.

He was an investor in JetMagic, a Cork-based airline that collapsed in 2004 owing about €11 million to its backers.

Mr Foley joined Aer Lingus in 2000 to help steer the airline to flotation under the chairmanship of the late Bernie Cahill.

Mr Foley was dismissed by Aer Lingus in June 2001 following allegations of sexual harassment made against him by two female employees.

The allegations were made by Joan Loughnane, Siptu's representative on the board of the airline at that time, and Anne Lawlor, who worked as a personal assistant at Aer Lingus.

Mr Foley denied the charges, claiming he was the victim of a conspiracy. At the time of his dismissal, the Wexford-born executive took a High Court action to prevent his removal from his post.

He lost the case and Aer Lingus is believed to have paid Mr Foley about €450,000 to comply with the notice terms in his contract of employment.

Mr Foley subsequently initiated High Court proceedings seeking damages against Aer Lingus and John Behan, an industrial relations consultant who worked with the airline at the time of the dismissal.

It is understood that the action against Mr Behan has been struck out.

No date was set for the High Court proceedings.

Mr Foley has been represented by Limerick-based solicitor John Power.

Mr Foley was succeeded at Aer Lingus by Willie Walsh, who now heads British Airways.