Loss of Aer Lingus executives 'a disaster'
The resignations of three Aer Lingus bosses is a catastrophe for the airline and for Ireland, it was claimed tonight.
Government officials confirmed senior executives, Willie Walsh, Brian Dunne, and Seamus Kearney, would quit the airline next year.
Olivia Mitchell, Fine Gael transport spokeswoman, said the shocking move showed the Fianna Fáil/Progressive Democrat coalition was paralysed by a lack of leadership.
“The airline has lost its unique and dynamic management team as a direct result of this Government’s inability, or reluctance, to take a decision on the airline’s future,” Ms Mitchell claimed.
“In a notoriously volatile and crisis-ridden sector, Aer Lingus now has even fewer options for survival.”
The decision came after the airline was brought from the brink of extinction to profit making.
Mr Walsh, chief executive, oversaw the carrier’s move from losses of €152m in 2002, to profits of €69m last year.
However, tensions with unions have risen after 2,000 employees were let go and the airline prepared to lay off another 1,300 as part of a radical restructuring plan.
The trio also proposed a €700m management buyout to continue the airline’s revival in fortunes. It is believed finance from a Japanese investment firm may have already been secured.
The Labour Party and Green Party called on the Government to come clean over the the executives’ decision to quit.
Roisin Shortall, Labour Party transport spokeswoman, said workers and the public were entitled to know the reasons behind the move.
“The loss of three such senior executives will be a real body blow and comes at a time when the company is facing a series of very difficult decisions,” Ms Shortall said.
“The public and the company’s employees are entitled to know the full story behind these resignations.”
It is also feared the move will slash the value of the company. The Green Party’s Eamon Ryan warned the resignations could damage the airline’s change in fortunes.
“There is a real fear that his (Mr Walsh) departure may jeopardise the future fortunes of the company,” he said.
John Sharman, Aer Lingus chairman, said the board would continue the good work started by the trio.
“All three have played an important role in the turnaround of Aer Lingus thereby placing the airline on a strong competitive footing,” Mr Sharman said.
“The board will ensure a smooth and orderly transition over the coming months, consolidating the progress made by the airline and building upon it.”
Martin Cullen, Transport Minister, said the airline now had new, tough challenges to face.
“Now we must move on. The company, through the combined effort of staff, management and the board has been turned into the best performing national airline in the world.”
He added he would meet with John Sharman, Aer Lingus chairman, in the coming days to plot the best way forward.
The senior executives will leave the company next May. It is not known what roles, if any, they intend to take up.
Mr Kearney held the role as chief operations officer, while Mr Dunne will give up his post as chief financial officer. No reason has yet been given for their decision to quit.
