Foley is sacked after Aer Lingus upholds complaints

Aer Lingus yesterday sacked its chief executive, Mr Michael Foley, after a board subcommittee upheld two complaints of sexual harassment against him.

As the State airline moved to terminate Mr Foley's contract with immediate effect, he was told its board could no longer have trust and confidence in him. It is understood the company told Mr Foley his alleged conduct was "less than satisfactory" given the obligations of his position, which he had held since last September.

He loses an annual remuneration package said to be worth more than £400,000, which included a salary of around £250,000 and additional pension benefits.

Yesterday's dismissal by a board subcommittee means he must vacate a south Dublin apartment rented on his behalf by Aer Lingus and must return a Mercedes company car. He also loses complimentary flights.

The subcommittee was appointed to assess a report by a separate board subcommittee which found the two complaints against Mr Foley were "correct in all material respects".

Mr Foley repeated yesterday that he was not guilty of the allegations made against him by his former personal assistant, Ms Anne Lawlor, and by a SIPTU worker-director, Ms Joan Loughnane. He declined to be interviewed. When asked whether he would take legal action against Aer Lingus, Mr Foley's spokesman said all options were under consideration.

The subcommittee is understood to have told Mr Foley that his alleged conduct "could not be properly classified as gross misconduct", which would be in serious or persistent breach of his contract. This meant the subcommittee stopped short of summarily dismissing Mr Foley, which would have ended all benefits he receives.

Instead, a condition of his departure is that he will paid salary for the remainder of his two-year contract, which ends in August 2002. It is thought 14 months' salary would be worth about £290,000 to Mr Foley.

In a statement, Mr Foley said he would not relent in his efforts to ensure that the truth about the allegations against him would prevail.

"I am shocked and disturbed by the decision of Aer Lingus," he said. "I reiterate my total innocence of the allegations made against me and will take all necessary steps to clear my good name."

Mr Foley had alleged a conspiracy to frame him within the company, although the investigating subcommittee said he produced no evidence to support that.

Mr Foley questioned why Ms Loughnane's complaint was made only in February after an alleged incident in November. He concluded a negotiation in February with IMPACT, which represented cabin crew who had left SIPTU.