Aer Lingus board fails to agree cost-cutting plan

The board of Aer Lingus has made no firm decisions in relation to the controversial cost-cutting plan following a nine-hour meeting…

The board of Aer Lingus has made no firm decisions in relation to the controversial cost-cutting plan following a nine-hour meeting today.

Sources at the company said the board’s review of the proposals would continue.

Aer Lingus chief executive Dermot Mannion is seeking to cut up to €100 million from its annual costs.

He is thought to want to axe 1,500 jobs from catering, ground operations and cabin crew at Dublin, Cork and Shannon.

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Some board members are said to be concerned about the direction the airline is heading and in particular a proposal to outsource a large number of functions.

The airline is also squeezing the Shannon Airport Authority for a better deal on passenger charges. Aer Lingus is believed to be seeking a deal for its transatlantic operations similar to that secured by Ryanair a few years ago on short-haul flights.

That deal was based on Ryanair meeting some demanding targets on traffic growth. Ryanair now accounts for about 50 per cent of Shannon’s traffic.