Aer Lingus high-flyer who is playing for high stakes now

Willie Walsh, head of the State airline, may be running out of time in his stand-off with pilots, writes Arthur Beesley

Willie Walsh, head of the State airline, may be running out of time in his stand-off with pilots, writes Arthur Beesley

Scant rest this holiday weekend for Mr Willie Walsh, the no-frills boss at Aer Lingus. With flights cancelled, bookings suspended and thousands of passengers severely disrupted by the stand-off with pilots, time may be running out for the State airline.

The company has been to the brink before - more than once - but the coming days could well bring the test that secures its future or prompts a final demise.

Appointed chief executive in October, Mr Walsh's job is not one that many would relish. Aged 40, he is described as an independent, uncompromisingly direct but personable individual.

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Unusually, he is said not to be interested in the material trappings of his senior position. It is a rare boss who does not engage a secretary, but Mr Walsh is happy to answer his own phone and type his own letters. His salary is worth about €317,000 - some €250,000 less than his predecessor, Mr Michael Foley. Where others choose Mercedes, he drives a Honda made in 1991.

A pilot by profession, it is more than mildly ironic that he should be engaged in a high-wire battle of wits with his former cockpit colleagues. Yet Mr Walsh was always a fast-lane man, rising swiftly through the ranks after he joined Aer Lingus in 1979 as a cadet. He was involved at a management level in the Cahill rescue plan in the mid-1990s.

He had intelligence to match his ambition, sources said, and is unlikely to lose sleep over the trouble with the pilots.

One person said: "He can be hard, but it's not personal. He will always explain the logic of what he is doing." Despite that, pilots refused to work on Thursday in a row over rosters that saw staff suspended a week earlier. In an unexpected development, Mr Walsh upped the stakes by halting flights for three days afterwards. It was a clear attempt to call the bluff of the pilots' union, IMPACT, which claims the proposed changes are unsafe and unnecessary.

Mr Walsh disagrees. He is supported by the Aer Lingus board and its chairman, Mr Tom Mulcahy. With SIPTU workers claiming to have delivered their side of the bargain, officials in that union have expressed concern for the future of low-paid workers at the company if it collapses.

Although that does not appear to be an immediate danger, Aer Lingus has lost €6 million since Thursday and the confidence of customers is waning. As architect of the recovery strategy developed after the attacks last September on the US, it is Walsh who felt the heat this week when the Taoiseach, Mr Ahern, said both sides should "cop themselves on". The statement amounted to more than a small hint that Aer Lingus should put its house in order.

Yet the company argues that it is attempting to do just that. Having strayed very near the abyss last autumn, it says the plan is the minimum required to survive. After a €150 million deficit last year, there is no leeway for false moves now.

Still, Mr Walsh is not a man to change his mind. An observer said: "He's driven by the power of what the job enables him to do. If he believes in something he will be more absolute than anyone else. When other people believe in things, factors will influence them ultimately and they'll be driven back or isolated." Such characteristics are likely to be pushed to the limit before the bout with IMPACT is won or lost.

There are two significant factors in the stance adopted by Aer Lingus this week. Firstly, the change of government means the stand-off occurs in a period of relative political calm. Secondly, any deviation from the plan would prompt a dangerous backlash from SIPTU, whose workers are implementing the plan in full.

An informed figure said: "I think he has come to the conclusion that should he be seen to back down on this one then then that would be read as a sign that he can be rolled over again any time."

That may well be the principle that guides Mr Walsh, although critics point out that the hands-on approach to negotiation leaves no room for last minute intervention higher up the line when the going gets tough.

Mr Walsh did not seek his job when it became vacant last summer. Mr Foley had been sacked after a board sub-committee upheld two complaints against him of sexual harassment. He always denied the allegations.

Mr Walsh enter the frame only when the former Glanbia executive, Mr Ned Sullivan, declined the job after the attacks in September. Quite how long the high-wire act at Aer Lingus continues remains to be seen. However, one thing is clear. Customers will stay away if the turmoil persists, removing any hope of recovery. Mr Walsh wants to eliminate that risk now. High stakes indeed.