MINISTER FOR Transport Noel Dempsey is prepared to support the calling of an extraordinary general meeting (egm) of Aer Lingus shareholders to consider changes made last year to the employment contract of chief executive Dermot Mannion.
His support would be a major coup for Ryanair boss Michael O’Leary, who this week requested an egm be called to consider the issue and put it to a vote.
Informed sources said the Minister was “furious” Aer Lingus agreed a new package with Mr Mannion last October that could see the airline boss walk away with two years’ remuneration if the company was taken over. This could be worth up to €2.8 million.
The contract changes were made while Aer Lingus was drawing up plans to axe hundreds of jobs and reduce workers’ terms and conditions. They were signed off by Aer Lingus’s former chairman John Sharman just before he stepped down in early October.
Mr Dempsey has decided not to attend a farewell dinner for Mr Sharman in protest, hosted on January 22nd at Chapter One, the Michelin-star restaurant in Dublin. The Minister sent a letter to Aer Lingus yesterday informing it he would be unable to attend the dinner in light of details about Mr Mannion’s compensation package.
Losing the Minister’s support on this issue would be embarrassing for Aer Lingus. It is relying on the Government’s 25 per cent stake to help fend off Ryanair’s €748 million takeover.
The Government’s representatives in Aer Lingus – Colin Hunt, Francis Hackett and Chris Wall – are expected to raise the matter at its next board meeting on January 23rd.
