Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I thank the Tánaiste. We are now clear that the Government is putting all its stock on the sale on the basis of growth projections for Aer Lingus. Those growth projections were already there. Aer Lingus's corporate strategy proposed the addition of one wide-bodied aircraft per year for the next five years. So it was going to generate those jobs anyway. Mr. Willie Walsh made it very clear when he came before the committee that there was nothing additional other than being able to utilise the services that were there and it might be able to assist in generating some passengers as they would travel through.

The Tánaiste said she had seen some aspects of the Nyras report. I bring to her attention one aspect of which it appears she was not aware. It sets out that Aer Lingus's crew costs are much higher than Vueling's. Vueling deliberately pays cabin crew low salaries to encourage staff turnover. It states the average turnover is 40% and the ideal tenure is six to 12 months. Vueling is very good at dealing with its extreme seasonality in this way. It continues to do the comparison with Aer Lingus and states that pay structures, particularly for long-service staff, are responsible for part of the pay gap. The report continues to state there needs to be an aggressive approach by the management to reduce the cost base of the company by €60 million.

The report identifies ways in which to achieve the cost savings and it is on the backs of workers. It is not those elements of the business that are subcontracted outside the State. It states that Aer Lingus ground handling costs are higher than those of both easyJet, by 30%, and of Vueling, by 45%, for each turnaround. If the Tánaiste was not aware of this she should have been. It also states that Aer Lingus self-handles at Dublin, Cork and Shannon stations, whereas easyJet and Vueling are outsourced.

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