- News
-
- Sport
-
- Entertainment
-
- Advice
-
- Roots
-
Make a comment
Larger Text
Print
E-mailAer Lingus may end money-losing U.S.-Ireland services
Airline may contract out to third party
With news that Aer Lingus’ first-half losses almost quadrupled last year’s comes reports that Ireland’s second biggest airline may give up on Ireland-U.S. flights and contract out to a third party.
The Irish airline, which will soon release its newest cost restructuring plan, reported a loss of €93 million ($132 million), compared to a €23.4 million ($34.2) loss last year. Sales fell 12 percent to €555 ($812) million, with average fares down 17 percent.
Aer Lingus’ new chief executive, Christoph Mueller, has said that the airline needs an “amputation,” not “cosmetic surgery” to reduce costs, and that long-haul flights to the U.S., especially those from Shannon, are under fire. Transatlantic services accounted for around €60 million of first-half losses.
Mueller stated that he appreciates the “national importance” of Aer Lingus’ American routes, but said that his airline is “not a charity,” suggesting that the Shannon to New York route has only survived due to pressure from the Irish government.
Reports say Mueller is hesitant to run any further money-losing services from Shannon at a time when Aer Lingus staff are being laid off or asked to take a pay cut.
The chief executive rated Aer Lingus’s odds of survival at “50-50.”
Aer Lingus’ cost-cutting plan will be unveiled in mid to late October after the Lisbon vote, so as not to further complicate matters for the Irish government.
Related Items
ST. PATRICK'S DAY RECIPES
Join us - follow IrishCentral.com
Click here to read more about IrishCentral.com.
About Us
IrishCentral is the website about everything Irish for everyone Irish -- the 70 million people around the world who trace their roots to the Emerald Isle.You'll find the most-fascinating stories from the United States, Ireland and the global Irish world, including the latest in news, entertainment, celebrity gossip, travel and vacations, sports, food and drink, Irish ancestry and genealogy, immigration, religion, business and opinion. (close)
Most Recent Blog Posts
