Aer Lingus has culled senior management numbers by 25 per cent it emerged as pilots questioned the airline on expansion plans once politicians axe a passenger limit at Dublin Airport.
Cabinet approved a bill on Tuesday allowing Minister for Transport Darragh O’Brien to drop or increase a 32 million a year limit on passengers at Dublin Airport that has sparked litigation and complaints against the State.
Trade union the Irish Airline Pilots’ Association (Ialpa) wrote to Aer Lingus head of strategy Reid Moody this week asking him to clarify plans to expands networks should the Oireachtas pass the law and allow the minister to scrap the so-called “passenger cap”.
Ialpa president, Capt Daniel Langan, highlights likely opportunities in South America, specifically Brazil, whose Government has discussed an air travel agreement with the Republic, and in Canada, where demand for travel to Europe is growing.
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However, Aer Lingus is weighing possible cuts to routes and schedules later this year as it seeks to reduce costs and boost returns to meet targets set by parent, International Airline Group and fend off challenges posed by growing uncertainty.
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“In the context of a potentially longer-term change in fuel prices and a more uncertain global environment, we are actively reviewing our cost base and our schedule beyond the summer to ensure that we operate as efficiently as possible and are positioned well for the future,” said the airline.
Last month Aer Lingus told unions that it was reviewing the “size and shape” of its schedule after this summer and into 2027.
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The airline told workers of the move after it reported a €103 million loss in the traditionally slow first three months of this year.
It also emerged that the company was had offered redundancy to up to 20 managers as part of its cost-cutting plan.
Industry figures calculate that it has cut senior management numbers by around 25 per cent.
Langan points out that Aer Lingus consistently argued that removing the Dublin cap would boost passenger numbers and enhance hub activity at the airport during the debate over the limit.
“Assuming the legislative process progresses as anticipated, it would be useful to understand how Aer Lingus intends to translate these opportunities into sustainable growth and market leadership,” he says.
He asks how Aer Lingus intends to use its fleet to develop new long-haul markets that may have been difficult to while the cap was in place.
Aer Lingus said that it welcomed news that the Cabinet was due to consider and move ahead with the passenger cap law.
“Urgent progression, enactment and commencement of an appropriate legislative solution is now needed to provide the certainty that is required for the Irish economy,” the airline stressed.
The Oireachtas needs to pass the law before a key European Court ruling that could force the cap’s implementation.
High Court action by the airline, Ryanair and North American carriers prompted a referral of several questions of EU law to the bloc’s courts.
That led to he Irish court stalling the cap’s implementation pending a ruling from Europe.
