Noonan says tough decisions required

Fundamental changes in Aer Lingus's structure, along with £150 million (€190 million) in equity and guaranteed loans for the airline are necessary if it is to survive. That was the stark view delivered yesterday to a joint meeting of Aer Lingus and Aer Rianta workers at Shannon airport by leader of Fine Gael, Mr Michael Noonan.

Workers were fearful that Shannon would be downgraded due to the current crisis, operating only for 16-hours a day in future.

Apart from the money required for survival, Mr Noonan said Aer Lingus must also undergo fundamental changes in its structure.

Referring to the proposed 2,500 job losses in the airline, he said: "I believe that job cuts on their own are not enough. Aer Lingus must have at its head a board of directors with the necessary skills and experience to meet the huge challenge facing the company. This is not now the case."

Stating that the current board contained political appointees, Mr Noonan said: "Such appointees do not have the appropriate qualifications for the task at hand."

Mr Noonan said: "It is absolutely unthinkable that Aer Lingus would be allowed to go under. It cannot be allowed to happen."

Making the case for aid for Aer Lingus, he said it was the only airline travelling from Ireland to the US without a subsidy following aid being provided to US carriers in the aftermath of the September 11th terrorist attacks. Reacting to fears expressed by workers over the fate of Shannon, Mr Noonan said Aer Rianta should put in place a strategic plan for the airport. He said the issue of the Shannon stop-over "is not on the immediate agenda, but certainly it is the intention of the EU Commission for an EU open skies by 2004".

At the meeting attended by more than 200 workers from Aer Lingus and Aer Rianta, anger was vented at Aer Lingus management over leaving workers, according to one Aer Lingus employee "completely in the dark over what is happening, we only know what is proposed from the newspapers".

Ryanair boss Mr Michael O'Leary also came in for criticism over weekend remarks about the bleak future for employees.

Munster MEP Mr John Cushnahan said he was "appalled" that he should even consider mounting a legal challenge against any proposed state-aid package for the airline.

Mr Cushnahan said that Ryanair had been in receipt of the equivalent of state aids through promotion of Ryanair routes and the four-year waiver of airport charges. "Given the current problems that Aer Lingus employees face, one would prefer to see him displaying compassion instead of callousness," he said.