Aer Lingus says new tax will cost it €30m
Aer Lingus says the new Government tax on departures will cost the company €30m.
In its Interim Management Statement, the airline says it expects to make a loss of around €20m overall this year.
Aer Lingus says the €10 departing passengers’ tax introduced in the Budget will cost around €30m as it will have to absorb the tax on 75 per cent of bookings.
That's just one of a number of factors which led to the airline reporting operating losses of €20m this year.
It says this is simply not sustainable and given the difficult trading conditions in the industry, it must now deliver on cost saving measures.
Those include a controversial cost cutting plan which will result in the outsourcing of around 1,300 jobs.
SIPTU has served two weeks strike notice on the airline and action will be taken if the company implements the plan without agreement.
But the airline says it has met with unions to try to find other ways of saving money - and in the absence of any alternatives, it will implement its plan from December 1.
