Beleaguered Aer Lingus is expected to announce further job cuts as it concludes talks with trade unions this week as part of a new round of US$100m cost cuts.
Troubled Irish airline Aer Lingus has reported a further drop in revenues, but has revealed that its overall performance is benefitting from efforts to cut aircraft and capacity.
As new TV series, True Blood, hits our screen, bloody thirsty Vampires are sexier than ever. With this growing new fan base in mind, Aer Lingus gears up to launch one of its latest routes to Bucharest, home to Vlad Tepes, the inspiration behind Bram Stoker’s Dracula.
Aer Lingus has become the latest airline to axe staff and call on those left to take pay cuts in a desperate bid for survival. The Irish flag carrier plans to axe almost 20% of its workforce, or 700 people, and has asked staff earning more than €35,000 (£32,400) a year to take pay cuts.
The Datalex Travel Distribution Platform (TDP) which powers www.aerlingus.com has enabled additional new online features that deliver further business flexibility and value for Aer Lingus. www.aerlingus.com currently accounts for over 80% of the airline’s bookings.
Aer Lingus has admitted to having “no idea” if it would be able to resist a third bid by Ryanair after its first half losses trebled. But the beleaguered carrier dismissed as “speculation” new reports that it is set to make 500 redundancies from its 3,800-strong workforce in a €130 million savings plan.
Losses at troubled Aer Lingus have more than trebled over the first half of 2009 as its attempts to reinvent itself as a low-cost carrier appear to have backfired. The Irish carrier reported losses of €73.9m, compared to €21.6m a year earlier, as average fares slumped 17% despite rising oil prices.
Aer Lingus is launching six more routes from its new Gatwick hub - Bucharest, Eindhoven, Tenerife, Lanzarote, Warsaw and Vilinus for winter this year.Its current flights to Dublin, Faro, Knock, Malaga, Munich, Vienna and Zurich will continue, but it will drop Nice during the winter months. With the addition of these new routes, the airline will operate 118 round trips a week.
Aer Lingus has issued its third profit warning this year, saying trading conditions had worsened markedly during the first quarter. The airline, which is currently without a chief executive following the resignation this month of Dermot Mannion, forecast a loss for 2009 “materially below the bottom of the range of current market expectations”.
Aer Lingus is weighing up a strategic alliance with a leading European airline as it endeavours to thwart a hostile takeover from Ryanair.The board of the Irish flag carrier is consulting with its financial advisor, Goldman Sachs, on various options, which include potential alliance talks with one or all of British Airways, Air France-KLM and Lufthansa.
The chief executive of Aer Lingus, Dermot Mannion, has resigned with immediate effect.The move comes a month after the Irish carrier reported plummeting losses of 108m euros for 2008 and a warning of bigger losses in 2009, as well as a share price that has fallen over 65 percent in the past year.
Aer Lingus has rejected Ryanair‘s offer of a €750m for a second time, following a meeting between the two airlines in Dublin yesterday.A spokesperson for Aer Lingus said: “Aer Lingus explained to Ryanair at the meeting how the bid fundamentally undervalues the airline, its robust financial position, ignores the substantial competition issues and is therefore not capable of completion.”