Oireachtas Joint and Select Committees

Tuesday, 17 February 2015

Joint Oireachtas Committee on Transport and Communications

Proposed Sale of Aer Lingus: (Resumed) Aer Lingus and Stobart Air

5:00 pm

Mr. Stephen Kavanagh:

If I may continue, long-haul aircraft in particular drive significant direct employment. In the event this particular transaction does not complete, Aer Lingus has its own growth programme but the composition of employment in Aer Lingus will continue to change. There are some processes within Aer Lingus that over time no longer had value for the customer, or the process has been replaced by automation or various things. What I can say is that, ultimately, as Aer Lingus grows the level of employment in Aer Lingus will grow but the composition of that employment is dynamic. A growing Aer Lingus in terms of fleet will ultimately require the workforce to accrue. We are a relatively lean airline. We have been through many restructurings in the past 20 years, in stark contrast to many carriers that continue to exist in Europe. That is how we have managed to withstand fierce competition from a very successful local incumbent. There will be job losses but there will be job losses in areas that do not add value to the enterprise. Forgive me for being blunt, but if customers do not value the service, the service does not get produced. Ultimately, however, there will be more employment opportunities created within the business in other areas. That is what growth ultimately delivers. Our proposition is that the growth and the opportunity that can be delivered is much greater under an IAG proposal than on a stand-alone basis but, as I said earlier, that does not invalidate our current business. It is simply an acceleration of an ability to take full advantage of that opportunity.

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