Taoiseach insists Aer Lingus policy will not change

The Taoiseach, Mr Ahern, insisted that the resignation of the three Aer Lingus executives would not alter Government policy on…

The Taoiseach, Mr Ahern, insisted that the resignation of the three Aer Lingus executives would not alter Government policy on the airline. Michael O'Regan reports.

"I wish to make it clear, on behalf of the Government, that today's developments will not deflect us from any of the necessary measures that need to be implemented in respect of Aer Lingus at both the operational and strategic level," he said.

He added that the Government's obligation was to deal with several thousand people who worked in the Aer Lingus complex. He had not been supportive of some of the initiatives brought forward.

"I assume that what I said about the MBO (management buyout) did not find favour with everybody, but I hope that was not an issue in all of this. My view on the MBO has not changed."

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Mr Ahern said the Government had heard the previous evening that the executives were about to resign. Thanking them for their work, Mr Ahern said that the Minister for Transport, Mr Cullen, would be meeting the airline's acting chairman tomorrow to clarify how quickly replacements would be appointed.

The Fine Gael leader, Mr Enda Kenny, had asked if the Government's "dithering and confusion, which appeared to exist about the future of Aer Lingus", had contributed greatly to the shock announcement. The news of the resignations, said Mr Kenny, came a day after the announcement by the chief executive designate for the Health Serve Executive that he was not to take up the post.

"The three managers in question, in association with the workforce, have done a remarkable job in Aer Lingus over the last number of years, turning it from a loss-making doomed airline to a profitable, low-cost carrier," he said. "Their departure will be a serious blow to a national airline and its credibility, and will obviously be a cause of major concern to the staff and customers of Aer Lingus."

After Mr Ahern's reply, Mr Kenny said it was time for the Taoiseach to "come clean".

"We need a far greater level of truth, openness and clarity from you, Taoiseach. Is it not a fact that the entire leadership of Aer Lingus is now leaving? Does this not amount to a serious vote of no confidence in your Government in the way that it set out to handle the future of Aer Lingus, its workers and, indeed, its customers?"

Rejecting Mr Kenny's assertions, Mr Ahern said Aer Lingus was having its best ever year. "Their profits this year will be extraordinarily good." He denied that the Government had failed to make decisions on the issues involved.

"When you and Deputy Rabbitte asked me in this House about the MBO, I said that I was not in favour of it. I said that I did not think it was good for the health of Aer Lingus," he said.

"I said I did not think that three senior management should get themselves into a position where they would be very wealthy overnight on a State company. I did not say it to offend them, or to walk away."

He said the Minister had discussions with the three men earlier in the day and in recent weeks.

Resignations force State to make decision: page 18