Brian Cowen (Laois-Offaly, Fianna Fail)

As this is an important issue, I wish to comment. We noted the statements by the CEO of Aer Lingus last week in respect of the company's transformation plan. As the Deputies will be aware, the National Implementation Body has invited the management and unions at the company to avail of the services of the Labour Relations Commission with a view to agreeing the cost savings necessary to secure the viability of the airline. The Minister for Transport dealt with this matter on Question Time yesterday. The Government commends the efforts made by the parties to these discussions and regrets that, to date, overall agreement has appeared elusive.

The Tánaiste and Minister for Enterprise, Trade and Employment received a letter from the company on 7 December, outlining its proposal for collective redundancies involving up to 1,065 staff to take place between January 2010 and March 2011. This is a normal notification procedure which, under legislation, the company is required to undergo. The position could, of course, change in the event that agreement on the cost-cutting plan is reached in the interim.

Where possible, the Government would encourage the parties to redouble their efforts, with the aim of achieving the necessary cost savings, while also minimising the magnitude of job losses at the company. From all the information available, the Government is satisfied that a major restructuring of the group's cost base is essential if Aer Lingus is to survive. The cost base of Aer Lingus is seriously out of line with that of its competitors. Airlines throughout the world are either rationalising or going out of business as a result of the global economic downturn. The Government wishes to see a strong and viable Aer Lingus in the future. The cornerstones of Government aviation policy are competitiveness and connectivity. A viable Aer Lingus is key to ensuring the achievement of these objectives. The State's labour relations institutions are available to assist.

See this speech in context