Current Account

Aer Lingus may be what Dilger is looking for

Aer Lingus may be what Dilger is looking for

Current Account awaits the arrival of a new chief executive at Aer Lingus with considerable interest.

As might be expected in this type of situation, speculation abounds as to the possible identity of the new recruit, with previous experience in aviation seemingly not a requirement of the rumour mill.

The best example of this comes in the person of Mr David Dilger, the clearly ambitious chief executive of food group, Greencore.

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Opinions differ on Mr Dilger's business expertise, but if he has proven anything during his tenure at the top of the company, it is that he has the stomach for cost-cutting and hard decisions.

Recall the faces of the Irish Sugar employees who lost their jobs in Carlow this week if you need convincing.

Perhaps more revealing on the Aer Lingus front however, were Mr Dilger's comments in a Financial Times interview published earlier this week.

Despite claiming to have no interest in taking calls from headhunters, Mr Dilger leaves the door open to new career directions "in a very general sense".

"I'd love to think that I would have one more different, new thing to do before I hang my boots up," he tells the paper.

It is just a small coincidence, presumably, that Mr Dilger chose to make the comment to the publication that attracts all the movers and shakers (including recruiters) of the business world both at home and abroad.

And it is an even smaller coincidence, presumably, that it came after an anecdote on how Mr Dilger left behind more than €1 million in options in Woodchester to take up a job with Larry Goodman in 1988.

Could he be subtly indicating that he might be prepared to give up his €861,000 annual pay packet for the €425,000 (plus pension) or so Aer Lingus would pay?

Will Superquinn chief stay for long haul?

Few will be as familiar with the precarious nature of empires than Simon Burke, the incoming executive chairman of Superquinn. With his affection for Byzantine history, Burke is arguably better placed than most to appreciate that success rarely lasts forever.

Perhaps it is this awareness that has informed his tendency to stay with high-profile jobs only for a short period before moving on to better things.

By Current Account's calculations, the longest Burke has stayed in any job since his career began is seven years, with his more recent jobs averaging at about three or four years. In almost every case, he has presided over a turnaround that has substantially raised the value of the company and provided him with valuable career kudos.

In the case of Superquinn, he claims to be in for the long haul, and this may indeed by true. Current Account will however be most surprised if his golden touch does not lead to a new opportunity (and a lucrative exit for Superquinn's new investors) before the decade is out.

Eircom feeling tender

Eircom's failure to land a single contract under the Government's €20 million broadband to schools programme is causing consternation at the incumbent company.

The firm, which controls more than 90 per cent of the Government's spend on fixed telecoms services, was outbid by a range of small firms, signalling renewed competition in the Irish market.

Firms like Digiweb and Smart Telecom - the two biggest winners in the competition will now be able to subsidise the roll out of new infrastructure offering greater choice for consumers.

But the real problem for Eircom could be the changing attitude of the Government toward tenders for telecoms services.

The Departments of Education and Communications have both proved that splitting telecoms contracts can provide value for money to the State. This is likely to set a precedent for the rest of the Government's telecoms business, which is rolled into a single contract with Eircom worth more than €100 million per year.

A decision is due by May on whether to retender the State's current telecoms contract with Eircom. Current Account advises Eircom's account managers to "go back to school" to make sure they can grab a slice of that one!