Aer Lingus considering transatlantic cuts
Aer Lingus may stop operating its loss-making routes to the US, especially those from Shannon, and transfer them to a third party or codeshare partner as part of initiatives to address its long-haul deficits, according to Irish press reports. EI CEO Christoph Mueller stated that he appreciates the "national importance" of the carrier's American routes but said his airline is "not a charity," suggesting that the Shannon-New York JFK route has survived only because of pressure from the Irish government, IrishCentral reported. In July, EI confirmed it would reduce long-haul capacity by 24% this winter and suspend service from Dublin to Washington Dulles and San Francisco from Oct. 25 until March 2010 and SNN-Chicago O'Hare on Sept. 1. It declined to comment to ATWOnline and confirmed only that it will release its newest cost restructuring plan in the coming weeks.
Separately, the carrier reportedly is refusing to bridge a €350 million pension shortfall in the Irish Airlines Superannuation Scheme, which is expected to provoke industrial action before year end. "If the company is not prepared to consider resolving this in a fair manner, it is fair to say there will be calls for industrial action," SIPTU Civil Aviation Sectoral Organizer Dermot O'Loughlin told the Irish Independent. "This is one of the highest deficits seen in a scheme so far and Aer Lingus doesn't seem to realize the consequences of saying it will not contribute anything more." EI reportedly said it is not required to increase its contributions.
ATWonline
Aer Lingus may stop operating its loss-making routes to the US, especially those from Shannon, and transfer them to a third party or codeshare partner as part of initiatives to address its long-haul deficits, according to Irish press reports. EI CEO Christoph Mueller stated that he appreciates the "national importance" of the carrier's American routes but said his airline is "not a charity," suggesting that the Shannon-New York JFK route has survived only because of pressure from the Irish government, IrishCentral reported. In July, EI confirmed it would reduce long-haul capacity by 24% this winter and suspend service from Dublin to Washington Dulles and San Francisco from Oct. 25 until March 2010 and SNN-Chicago O'Hare on Sept. 1. It declined to comment to ATWOnline and confirmed only that it will release its newest cost restructuring plan in the coming weeks.
Separately, the carrier reportedly is refusing to bridge a €350 million pension shortfall in the Irish Airlines Superannuation Scheme, which is expected to provoke industrial action before year end. "If the company is not prepared to consider resolving this in a fair manner, it is fair to say there will be calls for industrial action," SIPTU Civil Aviation Sectoral Organizer Dermot O'Loughlin told the Irish Independent. "This is one of the highest deficits seen in a scheme so far and Aer Lingus doesn't seem to realize the consequences of saying it will not contribute anything more." EI reportedly said it is not required to increase its contributions.
ATWonline