Aer Lingus is still some way from forming a strategic alliance with another airline, but aviation sources said yesterday the choice was down to two. These would be a link-up with the STAR alliance, which includes Lufthansa, SAS and United Airlines, and a group which includes British Airways and American Airlines.
The Central Representative Council (CRC) of Aer Lingus, which includes most of its trade unions, was briefed about the strategic alliance before Christmas by the airline's chief executive, Mr Gary McGann. Mr McGann told the CRC an alliance was essential to Aer Lingus.
The confusion over the disposal of TEAM Aer Lingus, the aircraft maintenance subsidiary, is believed to be a complicating factor in reaching agreement with a strategic partner. A Danish company, FLS, has agreed to buy TEAM, but trade unions are blocking the deal as they are not satisfied that their members' jobs will be secure.
The position is further complicated by the forthcoming by-election in Dublin North, where many Aer Lingus and TEAM workers live. "Do you really see anything happening until after the by-election?" a trade union source said yesterday.
Mr McCann told the CRC that the STAR alliance currently covers Lufthansa, United Airlines, SAS, Varig (Brazil) and Thai International. British Midland is not in the STAR alliance but is associated with it as SAS has a 40 per cent stake in it. Singapore Airlines, one of the most profitable in the world, is reported to be in discussions with STAR.
The other favoured partner is believed to be the alliance which includes British Airways, American Airlines, Qantas, Canadian Airlines and Aerolineas Argentinas. The Spanish state airline, Iberia, is said to be talking to this group. However, the alliance needs the go-ahead from the European Commission, which is insisting that British Airways surrender some of its landing slots at Heathrow as part of the link-up with American Airlines.
Aviation sources claimed yesterday Aer Lingus favoured the British Airways option because it entailed a sizeable cash injection into the Irish carrier. However, a spokesman for Aer Lingus insisted it was "pure and utter fabrication" to say that British Airways was proposing to pay £200 million for a stake in Aer Lingus.
Meanwhile, Aer Lingus has quietly started a new service across the Atlantic. On a trial basis, it has begun a twice-a-week evening service between Dublin and JFK International Airport in New York. The flight leaves Dublin at 5 p.m and arrives in JFK at 7:30 p.m. local time. The return flight leaves JFK at 9:30 p.m. and arrives in Dublin at 9 a.m.
The Aer Lingus spokesman said there was some evidence of demand for the evening service, which was being sold through the travel trade. It had not been promoted directly to the public.
The trial is to continue until March 26th.