8th December 2009

Aer Lingus possible change of HQ to UK

Aer Lingus is threatening to move  its operations from Dublin to Gatwick and Belfast after talks to cut pilots’ wages broke down. The move would also result in hundreds of further compulsory redundancies at the struggling Irish carrier.

Christoph Mueller, the new Aer Lingus chief executive, said that job losses of 676 announced in October would reach more than 1,000 because of the failure of Irish Air Line Pilots’ Association to agree to cuts, as well as cabin crew refusing to accept wage cuts for those on more than €35,000.

The airline claims it has applied  for a  UK Air Operator’s Certificate that would allow it to operate from Gatwick Airport  and Belfast Airport.

A spokesman for the company stated that the move would allow pilots’ contracts to be changed in line with the terms under which its Gatwick-based pilots already operate, although admitted that this could take several months.

In January the carrier plans to cut its long-haul fleet from six aircraft to four and its short-haul jets by up to five to twenty-eight. This would also involve redundancies.

The airline has been trying to slash €74 million from its wage bill as it battles to fend off hostile bid approaches from Ryanair, its low-budget rival.

In the first half of the year its losses nearly quadrupled to €82 million. Last month, it reported third-quarter revenues down nearly 10 percent and long-haul passenger numbers down 13 percent.

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