Aer Lingus has agreed to increase its pilots’ pay just as air travel faces unexpected challenges. Its biggest rival, Ryanair, which this week reported that profits in the three months to June 30th fell 46 per cent to €360 million, believes summer fares will be materially lower than last year instead of flat or modestly up.
All trends show holidaymakers holding out for cheaper prices than last year. Six months ago airlines expected reasonable fare increases. Against that background Aer Lingus faces increased competition on transatlantic routes, ongoing rivalry with Ryanair in Europe and the Dublin Airport cap among other problems.
But following Tuesday’s ballot result, showing that strong support among Irish Air Line Pilots’ Association (Ialpa) members for a 17.75 per cent pay increase recommended by the Labour Court, the carrier will begin boosting their salaries. They will receive 10.75 per cent by the end of October, backdated in stages to the start of 2023.
The rest will be paid through to the end of July 2026, along with increased allowances. Capt Mark Tighe, Ialpa’s president, calculates that members will be 19.2 per cent better off as a consequence. He called it the best pay award achieved in 30 years, vindicating industrial action that the union president told members was only necessary because of “management intransigence”.
Aer Lingus will argue that it got something too. The deal ends uncertainty over pilots’ pay dating back to October 2022, when they first sought 20 per cent-plus pay rises. The Labour Court also recommended ending a crewing agreement allowing pilots to take extra summer leave, which the airline will dub a productivity gain. It also caps pay for those flying narrow-body aircraft at point 20 on a 26-point pay scale, making those planes more efficient to operate over the long term.
There is a remaining issue. Agreements with cabin and ground crew allow those workers to revisit their terms if Aer Lingus gives other staff pay rises of more than the 12.25 per cent that they accepted without seeking extra productivity in return. The cabin and ground crew agreements run into 2025 and include a 1.5 per cent bonus.
The Labour Court gives pilots 13.75 per cent over a similar period, fixing the bonus as part of their pay. Fórsa, of which Ialpa is a branch, represents cabin crew, while Siptu acts for ground staff. Both will raise the pilots’ agreement. Whether the consolidation of the bonus and the summer leave change are enough to stave off claims from either or both remains to be seen.
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