Joan Burton (Dublin West, Labour)
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Question 11: To ask the Minister for Transport if he has been briefed by the Directors he appointed to the board of Aer Lingus on proposals by Aer Lingus management to cut annual costs by around €97 million up to 2011 including the possible loss of 676 jobs at the company in Dublin, Cork and Shannon; and if he will make a statement on the matter. [39524/09]

Noel Dempsey (Meath West, Fianna Fail)
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I was not briefed by the State appointed directors on the Board of Aer Lingus Group plc on the company's cost restructuring plan. A representative from the company briefed officials from my Department immediately following the company's announcement to the Stock Exchange on 7th October and my officials then briefed me on the matter.

Decisions on commercial and operational matters at Aer Lingus are a matter for the Board and management of the Company and it is not open to the Government to intervene in such matters. Aer Lingus is an independent Company and it has to make decisions on a commercial basis.

The Government is satisfied from all of the information available to it that a major restructuring of the Group's cost base is essential if Aer Lingus is to survive. This restructuring is a matter for the company. It is my belief that if that restructuring does not take place urgently the airline will find it difficult to survive in the long term and all jobs in the company could be at risk.

I understand that a consultation process between management and staff is now underway and I would encourage all parties to engage constructively in that process. The industrial relations mechanisms of the State are available to assist in reaching an agreed outcome for all concerned.