Discussions between unions and Aer Lingus over the granting of 14.9 per cent of the company to the workforce are likely to be completed within weeks.
The discussions are taking place against the background of a surprising turnaround in the company's finances. The company, which late last year was predicting losses of approximately €27 million for this year, is now expecting to return a profit in the region of €30 million to €40 million. The return to profitability could affect the Government's view on the sale of part of the company to a strategic private sector partner.
The turnaround is being credited to the progress which has been made on reducing costs. The company's survival plan set out to achieve €200 million in cost savings and they have been achieved. The company is now seeking to achieve a further €130 million in cost savings and is believed to be making good progress in that regard.
Aer Lingus is due to announce a major reduction in business class fares in the near future. A spokesman said he could confirm that the company had made good progress in achieving its targets, particularly in the costs side. "As we are going to announce a significant reduction in business fares we need to maintain the downward pressure on costs," he added.
Mr Noel Dowling, national industrial secretary with SIPTU, which has approximately 4,000 members in Aer Lingus, said the unions have experts examining the airline's figures. "The turnaround has been faster than was forecasted and we are glad of that. At the moment we are busy trying to complete the employee share ownership plan and that is our focus." He said the union would in time consider the airline's return to profitability and whether this would have any impact on the pay freeze which was agreed in return for the employee share ownership deal. The deal will have to be voted on by the union's membership.
The company has shed 2,000 jobs as part of the restructuring plan introduced in the wake of the September 11th attacks on the US. The fallout in terms of passenger numbers has not been as severe as had been feared.
