The hint of the leprechauns in yesterday's launch by Aer Lingus of its new corporate identity, combined with the adman's poetry employed to inflate the company's newly designed shamrock evoking "positive images of fertility, freshness and. environmental purity" put the final seal on the long process of rescuing the national airline and strengthening its competitive ability. The crisis after the Gulf War created enormous pressures for the airline business internationally, and the radical surgery that has divested Aer Lingus of most of its ancillary attributes, and shrunk its staff, was a painful necessity for survival.
There have been other, more tangible, signs of its success in doing this than the unveiling of an "Irish, vibrant, dynamic, responsive, natural and green" new symbol. The decision by the European Commission just before Christmas to approve the final £50 million tranche of State aid on condition that it will receive no more was a vote of confidence in the steps already taken to cut costs and increase productivity. The cost for the public purse has been substantial £175 million over the last three years, including the recent tranche. But the modest return to profits in the first two years, which is expected to be reaffirmed at the end of March when the company publishes its annual accounts, amply justifies the restructuring programme.
Exposure to international markets, and carving out a distinctive niche in an increasingly diverse and competitive environment, have transformed the outlook for Aer Lingus. The company developed during the decades of rigid control of international aviation when it was possible for a small national carrier to survive and prosper. Even without the brusque effect on passenger confidence produced by the Gulf War, it would have faced an uncertain future as regulations in the industry are relaxed. As matters stand, the slimmed down company, without the cushioning of a major strategic partner, is exposed to the ups and downs of a business in which it will have to be constantly vigilant about its costs.
There are still question marks over TEAM, whose losses reflect the damaging conflict over restructuring and associated difficulties, including the failure to regain the Virgin maintenance contract last summer. The continuing need for savings, and the prevailing depression in the market, are factors which will affect group finances for some years, in spite of productivity improvements. Aer Lingus itself is not immune to stagnation in some areas of its operations, particularly on its European routes.
It will be very different skies in which the new livery will make its appearance from those which its predecessors adorned. But in the brisk world of the international airline business it will be distinctive and fresh, to say nothing of the accompanying touch of literary class. Aer Lingus still embodies an element of national pride.