Aer Lingus has decided after a lengthy review to remain in the Oneworld alliance of eight international airlines, it has emerged. Emmet Oliver reports.
As a fully-fledged low fares carrier, the airline has increasingly questioned the advantage of being part of the alliance. It has been suggested its new identity might not be compatible with the full-service model offered by most Oneworld members.
Several months ago chief executive Mr Willie Walsh made the airline's views known at a meeting of the alliance. But since then alliance members have prevailed on Aer Lingus to remain within the organisation. It is not clear whether the airline has received certain guarantees in exchange.
At present, frequent or TAB flyers with Aer Lingus can earn valuable points by flying with airlines in the alliance. Passengers with tickets from any of the Oneworld airlines can also use Aer Lingus executive lounges.
Aer Lingus is currently withdrawing its general tier one TAB scheme, but retaining its Gold Circle Club for high-spending business travellers. Members of this group can benefit from priority check-in services, access to special lounges and flight upgrades. They can avail of these services with Aer Lingus and its various Oneworld partners.
The members of the Oneworld alliance are due in Dublin shortly, although the meeting is to discuss general aviation matters.
Oneworld's other members are: American Airways, LanChile, Qantas, Cathay Pacific, Iberia, Finnair and British Airways. Membership allows the airlines to sell tickets on each other's flights.
Meanwhile a Cabinet sub-committee on the future of the airline is due to meet in the next few weeks. There were suggestions last week that the committee would meet shortly but this did not happen. According to sources there is little political urgency around the issue at present.
However the airline is pushing ahead with talks with Airbus and Boeing on a long-haul fleet replacement deal. The airline needs between €200 and €300 million to seal a deal with either manufacturer.
Mr Walsh and his management team recently withdrew a request to draw up an "investment proposal" for the airline. The Taoiseach, Mr Ahern, said it would not be "appropriate" for the airline to be purchased via a management buyout. However the Tánaiste, Ms Harney, said it was important to keep all options open.
