Aer Lingus is to cut almost 700 jobs and warned that further cuts were possible “to ensure the continued viability” of the airline.
The Irish carrier aims to make 97 million euros-worth of savings before the end of 2011 by slashing operating costs.
Besides job cuts, the airline is targeting reductions in basis pay for those earning more than 35,000 euros a year, cuts in variable pay and allowance for all staff.
The cost cutting involves 498 redundancies in operational areas and 187 from head office and support areas. These are in addition to 51 previous HQ redundancies.
Total staff savings will amount to 74 million euros a year from 2011, with around 80% of this expected next year.
“The group believes that these proposals are the fairest and most balanced way to reduce costs towards the level of lower cost competitors, while protecting the les well-paid employees,” the airline said.
It said current operating costs were “significantly out of line” with competitors.
CEO Christoph Mueller said: "The outlook in each of our current core markets is poor and, in line with the macroeconomic outlook, we do not expect any near-term recovery.
"Against this backdrop, Aer Lingus cannot continue with an operating cost base which is structurally uncompetitive when compared to that of its closest peers. A significant differential in operating costs is not sustainable."
by Phil Davies
