Dáil debates

Wednesday, 27 May 2015

9:30 am

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

I am asking the Chief Whip to withdraw his proposal because the measure requires detailed analysis. I do not know whether the Government was made aware - certainly, the Dáil was not - of the analysis that was commissioned last February by Aer Lingus and IAG in terms of the cost savings that would arise in the event of a merger. That is set out in the NIRAS report, but we have had no briefing on that report. From my understanding, it is an analysis that is clearly focused on making Aer Lingus a low-cost airline. It identifies that all ground-based operations, administration and staff costs in Aer Lingus are 40% higher than at Vueling or EasyJet. It talks about the outsourcing of all ground-based operations. There is no cost comparison with British Airways, for example, or other airlines at that level. The NIRAS report identifies the need for job cuts in several areas as part of cost reductions under phase one, including 20% cuts in ground handling, 40% in catering, 15% in maintenance, and 25% in heavy maintenance to eastern Europe.

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