Aer Lingus cuts costs to avoid Ryanair takeover
Aer Lingus today vowed to cut costs by pushing for more flexible working arrangements as the airline moved again to ward off Ryanair’s hostile takeover bid.
Management insisted jobs would not be axed without agreement from workers.
Under the plan the board of the recently privatised airline will bring in new staff contracts, simplify pay grades and press for standard overtime arrangements for all employees.
They also plan to renegotiate contracts with airports and introduce a fuel efficiency plan.
The 12-step cost-cutting scheme was put to unions today.
Aer Lingus claimed that since 2001, when the airline was heading near bankruptcy, costs have been cut by 47%, and management insisted they would build on this.
Dermot Mannion, Chief Executive of Aer Lingus, said: “Aer Lingus has tremendous opportunities ahead to build on the strong platform we have put in place.
“We are resolute in rejecting Ryanair’s wholly inadequate offer and planning for long-term competitive growth, servicing one of the most attractive aviation markets in Europe.”
Ryanair had offered €1.48bn for the company, and earlier this week the budget carrier turned up the pressure on Aer Lingus by taking its share-holding in its Irish rival to more than 25%.
However, Aer Lingus chiefs today reiterated their advice to shareholders to ignore the offer.
