Job cuts at Aer Lingus still on cards as plan proceeds

Aer Lingus last night pledged to continue with the implementation of a new business plan that will see the airline cut hundreds of jobs, irrespective of a Government decision about privatising the State carrier.

The company's board met yesterday for the first time since it emerged that chief executive, Mr Willie Walsh, chief financial officer, Mr Brian Dunne, and chief operations officer, Mr Séamus Kearney, had asked the Government's permission to put together a management buyout (MBO) proposal.

Mr Walsh and Mr Dunne, who are both directors, attended the meeting. Afterwards, Aer Lingus issued a statement saying its board and management remained completely focused on the "day-to-day business and on developing and implementing the business plan that will ensure continued success of the airline".

The Irish Times revealed this week that the business plan could result in the airline cutting a further 1,300 people from its workforce, while other estimates put the number at 900. The crisis sparked by the World Trade Centre attacks in September 2001, forced the Aer Lingus to cut its workforce by 2,000 to over 4,000.

A sub-committee of the Cabinet, chaired by the Taoiseach, Mr Ahern, is considering all issues relating to the airline's ownership.

The Government has told Mr Walsh and his colleagues not to do any further work on putting together an MBO bid until that sub-committee has finished its work.

The Aer Lingus statement last night effectively confirmed that the executives were complying with this request.

The statement also said that Mr Walsh and his colleagues told the board that at this stage, they have not developed an investment proposal for the airline.