Ahern warns of Aer Lingus plight after US attacks

The Taoiseach Mr Ahern today pointed to the "very grave consequences" created for Aer Lingus by the terrorist attacks on America.

He said the Minster for Public Enterprise would be holding meetings with Aer Lingus management over the coming week to try to secure the future of the company.

He spoke after the state-backed company announced plans for a 25 per cent cut in services, a fleet reduction and the loss of more than 600 part-time jobs in response to the crisis created for the air industry by events in the US.

There are also fears for as many as 1,700 permanent posts among the 7,000-strong Aer Lingus workforce as part of a survival package.

Public Enterprise Minister Mrs Mary O'Rourke is due to meet trade union representatives from the airline next week in the face of demands for extra government cash.

Mrs O’Rourke said yesterday "this was an issue I and the Government would be very willing to talk about".

Representatives from IMPACT and SIPTU, the company’s two largest unions, were meeting management today for talks.

Earlier the Labour Party claimed the news confirms that North County Dublin is facing a major employment crisis.

The crisis "will require urgent attention", Mr Sean Ryan, Labour TD for Dublin North said. He called on the Government to create a task force to generate employment in the area.

Mr Ahern spoke of the difficulties confronting Aer Lingus at Shannon airport after arriving back in Ireland from a Downing Street meeting earlier today with Prime Minister Tony Blair, when international terrorism - as well as Northern Ireland issues - were on the agenda.

He said Aer Lingus's current position was part of "a European Union and global problem."

He called for "realistic responses" from all the airline staff to secure a long-term future for Aer Lingus and "sustainable employment for the maximum possible workforce."

Mr Ahern also pledged that Dublin would be working very closely with Europe to develop appropriate responses to what he called "this unprecedented situation."

In another move prompted by fall-out from last week's American outrages, management and unions at Ireland's Waterford Crystal glass manufacturers will meet next week, with speculation intensifying over the possibility of short-time working being imposed in parts of the company's factories.

Waterford is regarded as a prestigious brand leader in the glass crystal industry, particularly in the United States, where there has already been a fall in sales because of the American economic downturn.

Now there are fears that the terrorist attacks will amount to a further blow. The crystal company, which has a 1,600-strong workforce at factories in Waterford and nearby Dungarvan, is reckoned to have around £90 million worth of stockpiled goods.

Additional reporting by PA