Aer Lingus confirms 2,000 permanent jobs will go

New Aer Lingus chief executive Mr Willie Walsh has given details of the company's rescue plan to union officials at a meeting…

New Aer Lingus chief executive Mr Willie Walsh has given details of the company's rescue plan to union officials at a meeting with union representatives in Dublin.

The meeting ended after it was announced 2,026 permanent workers - around one third of the staff - would be laid off.

The figure includes 150 pilots, 470 cabin crew, more than 500 ground staff and 550 clerical staff.

A further 800 jobs will go when support services are transferred to subsidiary companies.

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Managers said the restructuring would guarantee the long-term viability of the company.

After running into financial problems earlier this year, Aer Lingus has been plunged into crisis by the after-effects of the September 11th attacks.

And there is still uncertainty over a Government plan to bail out the airline's shorter-term difficulties by guaranteeing a £100 million loan.

The European Commission, though permitting a similar development in the case of Belgium's bankruptcy-threatened Sabena, had indicated its reluctance to approve any more handouts to troubled airlines.

The Minister for Public Enterprise Mrs O'Rourke has pledged to seek a Cabinet go-ahead for the scheme early next week - but it will be conditional of European approval.

Management warned that the airline, losing £2 million a day, will run up an accumulated deficit of nearly £200 million before the end of the year if the plan is not accepted.

Meanwhile, the Taoiseach was set to raise the issue of more state funds for airlines at today's summit of European Union leaders in the Belgian city of Ghent.