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Aer Lingus in big downturn major savings sought

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News - News from Ireland

Written by Hugh McManus

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Aer Lingus, the former state airline of Ireland, suffered a major loss of €22 million for the first half of 2008.  The airline is planning to be introduce sweeping cuts in an effort to keep the carrier solvent: the term that was used was "fundamental overhaul" to the cost basis of the carrier.  The carrier hinted that future losses could worse if changes weren't made. There were no details on possible cuts though many predict reductions in the carriers 4,000 strong headcount.  The airline has, over the years, refashioned itself as a low cost carrier.  While maintaining business class in long haul routes, the carrier has pulled out of the OneWorld Alliance, a move which means it no longer has direct access to many of the more lucrative business travel contracts in the United States. < Prev   Next >