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Groups reject IAG's offer of Aer Lingus guarantees

Trade unions and County Councils have rejected IAG's offer of guarantees regarding the future of ...
Newstalk
Newstalk

16.21 2 Feb 2015


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Groups reject IAG's of...

Groups reject IAG's offer of Aer Lingus guarantees

Newstalk
Newstalk

16.21 2 Feb 2015


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Trade unions and County Councils have rejected IAG's offer of guarantees regarding the future of Aer Lingus, saying a promise to not sell Heathrow slots "doesn't really matter that much" in practice.

The IMPACT trade union has described guarantees by IAG about the future of Aer Lingus as 'unconvincing'.

The company behind a bid to buy Aer Lingus has said it will guarantee that the airline's slots in London Heathrow Airport will not be sold. International Consolidated Airlines Group, IAG, says it will also guarantee to use those slots for Irish routes for at least five years after any takeover.

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It has issued a statement this afternoon after Taoiseach Enda Kenny said he would not consider any sale unless he had a guarantee about the future of the Irish routes to Heathrow. The group is offering “legally-binding commitments”.

These include: a guarantee that the Heathrow slots cannot be sold, even to fellow IAG airlines, without the government’s approval; the Aer Lingus company name, head office location and palce of incorporation will all remain in the Republic of Ireland, and will need government agreement to move; and to continue operating a service to Ireland from those Heathrow slots for the next five years.

IAG chief executive Willie Walsh said in a statement that Aer Lingus would continue as its own brand, and that Dublin Airport could gain business by taking on more of the group's transatlantic traffic.

Transport minister Paschal Donohoe says he will consider the statement from IAG "very carefully".

Niall Shanahan, Communications Officer with IMPACT, said the commitment to not sell the slots “doesn’t really matter that much.”

“We’re unconvinced to be perfectly honest. A commitment not to sell those Heathrow slots is not a guarantee that the use of those slots would not be used. IAG would be able to change the use of the slots as they please, so a commitment not to sell doesn’t really mean that much,” he said.

Meanwhile, Clare County Council has unanimously rejected any commitment from IAG that does not explicitly guarantee Aer Lingus' long term commitment to services between Shannon Airport and London Heathrow.

Councillors warned that any guarantee that omits a specific reference to Shannon is "unacceptable" - and that the Government should retain its shareholding of over 25 percent in the airline.


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