Anger over Aer Lingus buyout 'plot'
The proposed management buyout of Aer Lingus represents an outrageous conflict of interest, it was claimed today.
Socialist Party leader Joe Higgins claimed there was a callous and concerted strategy to undermine the position of Aer Lingus employees who were being “hounded” out of their jobs.
In an angry exchange of words in the Dáil, Mr Higgins asked the Taoiseach why Aer Lingus chiefs had not been sacked for seeking the privatisation of the national airline “so they could buy it themselves and in the process make an obscene financial killing?”
He expressed amazement that the Government apparently saw no problem with watching Aer Lingus executives, charged with protecting a crucial asset of the taxpayer, sitting in their offices and instead plotting to make it their own private property.
The Dublin West TD said in any other circumstances such conflict of interest would be dealt with by instant dismissal.
But Mr Ahern said a management buyout was not possible.
He said the Aer Lingus management team, headed by chief executive Willie Walsh, had not been dismissed because they had worked hard to successfully turn around the airline’s fortunes.
He claimed Aer Lingus and budget airline Ryanair were the only two airlines in Europe making any money.
“There are immense difficulties facing the aviation industry,” he said. “Yes people have lost their jobs but in other countries the entire company has gone to the wall.”
He said Willie Walsh and his staff were trying to maintain the greatest number of jobs whilst expanding the company.
“If Deputy Higgins really believes that Aer Lingus can stand out against what is happening in the international market he has confirmed what I always thought, that he lives in cloud cuckoo land,” he added.
But the Socialist leader hit back, telling the Taoiseach he was not “hanging with Hector”.
He demanded Mr Ahern explain how it was not a conflict of interest when a publicly-owned company, which will make €90m this year, proposes to “savage” 1,300 jobs so that speculators could move in and buy it.
But Mr Ahern said there was no possibility of the State providing significant aid to secure a State buyout.
He was adamant it was not compatible with the mandate of Aer Lingus to have a management buyout, but would not be drawn on whether he believed it would be a conflict of interest.
