Dublin's FLS operation escapes job cuts

The Dublin operation of FLS Aerospace, which employs 1,500 people, has managed to escape widespread job cuts announced yesterday by the company.

FLS Aerospace said it was discontinuing heavy maintenance at Stansted and Manchester resulting in 420 job losses.

Aircraft heavy maintenance will now be consolidated in Dublin. FLS said the Dublin facility, while loss making, was large enough to handle the volume of maintenance expected in 2004.

A spokeswoman said the Dublin operation now had an opportunity to return to profitability, but there were no plans to increase staff numbers. She said cost savings would still be needed at Dublin.

Aer Lingus, Ryanair, Virgin Atlantic and easyJet are among FLS Aerospace's customers.

Talks on a takeover are continuing with FLS Industries, the parent of FLS Aerospace. The company would not comment further but said the talks were going according to plan. Most aviation observers believe the purchaser is likely to be Swiss firm SR Technics.

The company said that, given market conditions, it could no longer justify the cost associated with running three heavy maintenance operations at Stansted, Manchester and Dublin.

"The available work in the heavy maintenance market continues to reduce with the retirement of older aircraft and with different maintenance requirements for newer aircraft types," said a company statement.

The company said its joint venture with MyTravel Airways at Manchester, MyTravel Aircraft Engineering, would not be affected by the changes.

FLS Aerospace has been under severe pressure because of the downturn in the aviation sector following the September 11th attacks in 2001. It is expected to lose $13 million (€10.5 million) for 2003. "While many of the services offered by FLS Aerospace can add value to the business and make a reasonable return, it is clear from results over the past five years that the aircraft heavy maintenance activity in the UK has been, and continues to be, loss-making," said the company.

Details of the restructuring plans were given to FLS Aerospace employees and unions yesterday in Dublin and in other locations.