Aer Lingus to stay in Ireland

Hotel News - 07/12/2009

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Aer Lingus, one of Ireland’s premier aircraft, have released a statement disproving any rumours of shifting to UK in the immediate future. The struggling carrier said that they had no plans of moving to UK just now. The statements will have brought much relief to the airline’s staff staff who had been worrying about their job security.

After the airline applied for an operating license in the UK rumours began flying, that the move to Britain was imminent. Since the airline has been struggling post-recession, and had on-going problems with its Ireland-based union, the reports appeared credible.

The airline’s talks with union representatives have reached a state of deadlock as they discussed issues like salary cuts for crew that earned more than 35,000 pounds per year. Unions on the other hand are demanding that the salary cuts be valid only for a few years and hefty compensation to be given in its place. Aer Lingus intends to ground six planes in the next quarter and also decrease its salary bill by 74 million euro.

In a move to combat rising costs, Aer Lingus intends to cut over 600 jobs. Those affected will also include and flight crew. If a settlement is not reached soon, job cuts would number around 1000.

If Aer Lingus moves to the United Kingdom, it will be declared as a new company. The staff, which is Ireland based, will have to reapply for their existing jobs. This would allow Aer Lingus to modulate their staff, change contracts and also reduce salaries. The two main airports that will be favoured if the airline shifts base will be Belfast and London.

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