More than 100 Aer Lingus workers involved in ground handling at Shannon are set to lose their jobs as part of a cost-reduction plan by the airline. Emmet Oliver reports.

The airline said there would be no compulsory redundancies and a voluntary severance deal would be offered. It blamed the job cuts on a "significant decline in third-party handling business".

The airline emphasised that the redundancies would be across the ground handling operation at Shannon and not concentrated among particular grades. The airline said there were only nine flights passing through Shannon each day and this was not enough business to justify retaining 208 staff.

Staff were informed of the decision yesterday and further meetings are planned.

The airline said a new operating structure would be put in place.

It is understood the airline has been concerned about the cost of the operation for some time, although it denies the move is part of an overall cost-cutting effort by Dublin management. The majority of staff who remain in Shannon will concentrate on the airline's own ground handling requirements.

The Fine Gael deputy transport spokesman and Clare TD Mr Pat Breen claimed Aer Lingus was not committed to Shannon.

"This is terrible news for the workers and their families, and is another devastating blow to the region. The bottom line is that Aer Lingus management in Dublin is not committed to Shannon... The airline is also turning its nose up at viable business opportunities at the airport, which is a disgrace."

He claimed Aer Lingus was cutting flights to the US. "Flight EI 135 from Shannon to Boston has been cut from seven days a week to five, even though last season this flight was constantly overbooked. Flight EI 111, originally a direct flight from Shannon, now originates in Dublin, which means less capacity for Shannon."

He said it was clear the airline wanted to consolidate its business in Dublin and downgrade its Shannon operation. "Not a single new service to continental Europe has been introduced over the past few years," he said.

Meanwhile, Impact, the union which represents Aer Lingus cabin crew, is still in discussions with the management over the issue of re-locating 29 staff from Shannon to Dublin. Cabin crew have voted for strike action over the proposed moves. Talks continued at the Labour Relations Commission yesterday.