Aer Lingus could cut 500 jobs while axing some routes out of Dublin as it grapples with rising costs and increased competition, the airline said on Thursday.
Higher fuel bills and increased rivalry on North American services are eating into the Irish carrier’s profits, prompting a review of the business earlier this summer.
The company told staff on Monday that it will seek up to cut up to 500 jobs from a total workforce of 6,500 and will begin talks with trade union representatives shortly.
Aer Lingus said the cuts could involve 70 pilots, 140 cabin crew and 290 jobs in its Dublin Airport head office.
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.
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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.
Chief executive, Lynne Embleton stressed that the move would “support future growth and continue to provide connectivity and significant economic contribution to Ireland”.
Trade union Fórsa responded that job losses “must always be a last resort” and vowed to take every step to minimise any need for compulsory redundancies.
The union, which represents cabin crew and office staff confirmed that it would take part in talks with the company.
“Today’s news will be very difficult for Aer Lingus workers and their families, many of whom will be worried about what this means for their livelihoods,” said national secretary Hazel Nolan.
The Irish Airline Pilots’ Association (Ialpa) argued that management was proposing cuts in one of Europe’s strongest carriers, backed by an owner which earned €5 billion operating profit last year.
“This proposal raises fundamental questions about the strategic direction being taken by Aer Lingus,” said the union’s president, Capt Daniel Langan.