THERE will be no more rescue packages for Aer Lingus if the company's commercial viability his threatened by industrial action, the group's chief executive, Mr Gary McGann, has warned.
Speaking at the publication yesterday of the Aer Lingus annual report, which records group profits of over £50 million, Mr, McGann cautioned the unions that the company was still at a vulnerable stage in its recovery.
Aer Lingus faces a threat of industrial action by cabin crew from June 4th over staffing levels on routes to be operated jointly with other airlines, while the company's biggest union, SIPTU, is about to serve notice of a new pay claim.
"We must be realistic in the context of the aviation market as a whole and maintain the pace of recovery", Mr McGann said. Our balance sheet remains weak, our profits, although recovering, are modest for a business of this size, and we must continue the improvement in our unit costs and in the growth of profitable revenues.
Referring to the company's "Worldwide Partnership" with Delta Airlines, the leasing arrangement with CityJet and other strategic alliances, Mr McGann said: "These commercial initiatives pose no threat to jobs in Aer Lingus. On the contrary, by allowing Aer Lingus to grow its business, they will actually improve employment prospects."
Pay claims, he said, would be dealt with in the context of an organisation which had to contain its unit costs in order to remain competitive.
"It is important that everyone in the Aer Lingus Group recognise the commercial constraints under which the group must operate. There will be no more rescue plans", he continued. "Through their efforts, the staff and management of Aer Lingus Group have achieved much in bringing about an improved cost structure which allows the company to compete in the marketplace. Further progress in unit cost reductions are necessary to ensure continued competitiveness. All talks on pay must be conducted against this backdrop.
"I must emphasise that we will continue to implement essential commercial developments and resist unrealistic pay demands, which will only put in jeopardy the recovery we have all worked so hard to achieve."