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.

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.

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