Up to 500 jobs at risk at Aer Lingus

The airline said it needs to cut some flights to improve its operating margins
Up to 500 jobs at risk at Aer Lingus

By Bairbre Holmes, Press Association

Up to 500 jobs are at risk at Aer Lingus as it cuts “poor-performing routes”, the airline has said.

In a statement released on Thursday, the Irish flag carrier said changes are “essential” to improve its operating margins, which it needs to do to attract future investment.

It said the cuts come in the context of wider issues it is facing, including a “challenging macroeconomic environment”, increased competition on transatlantic routes, and increased supplier, carbon, and fuel costs.

Senior management roles have already been reduced by around 25 per cent, the airline said.

However, it has proposed a further 25 per cent reduction of Head Office employee costs.

Aer Lingus said the cuts could involve 70 pilots, 140 cabin crew and 290 jobs in its Dublin Airport head office.

A 6 per cent cut to long and short-haul flights will take effect from late September and continue into next summer.

It will cut capacity by 6 per cent overall and will axe flights from Dublin to Denver, Minneapolis, Las Vegas and Split in Croatia this autumn. Meanwhile flights to Seattle, Frankfurt, Hamburg and Malta will operate as summer-only services from November.
The company needs to restore margins earned from its business to between 12 and 15 per cent in order to get renewed investment from its parent, International Airlines Group (IAG). Those margins are currently around 10 per cent.

All customers affected by these changes will be “contacted directly and provided with re-accommodation or refund options”, the statement said.

It continued: “Aer Lingus will consult with employees and their representatives regarding the Head Office function changes and the network changes.

“These changes could see up to 500 employees leaving the airline.

“With many fleet decisions upcoming, Aer Lingus will also engage with employees and their representatives on cost efficiency and productivity so that the airline can be an investment case within the IAG group.

“The more cost-efficient and productive the airline is, the more it will be able to fulfil its network and growth ambition.

“The consultation and engagement process will focus on reducing redundancies and potential future redundancies and on what needs to be done to secure future investment in the business.”

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