Oireachtas Joint and Select Committees

Tuesday, 22 June 2021

Joint Oireachtas Committee on Transport, Tourism and Sport

Issues facing the Aviation Industry: Discussion (Resumed)

Ms Lynne Embleton:

There have been extensive discussions with staff and with union representatives since the pandemic hit. I was not in Aer Lingus in 2020 but I know that discussions with all of the union groups were intensive and, in many cases, very productive. The issue of near-term cash-burn and how the unions, employees and management can come together to stem the bleeding has been a significant focus throughout the pandemic and has seen significant changes, which we acknowledge. The key issue with the Shannon base is not just surviving the bleeding in the near term but having a cost base that will enable us to feel confident about investing in aeroplanes and creating routes. It is a risk to commit to a route. The costs are fixed and the revenues are not. It is in the interests of jobs and connectivity to ensure that we have a structural cost base that means that we are fit to fly, grow and expand. That issue has been subject to significant assessment and analysis internally in Aer Lingus. That assessment concluded that the best way to sustain, maintain and grow flying is to have an efficient cost base, not because of the contribution of staff as individuals but as the structure of the flying programme. It was not sustainable to continue.

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