Airline says job cuts will help it compete with rival
Aer Lingus said it has the support of unions and investors in its attempts to fend off Ryanair's €748m takeover bid.
The Irish flag carrier said a union deal to cut 200 jobs would restructure the company and help achieve a better financial standing next year.
"This will reposition Aer Lingus, yet again, as an airline that will be even better able to compete with Ryanair," said Aer Lingus chief executive Dermot Mannion speaking on state radio.
The deal also includes a payment freeze delivering €50m in savings, according to one report.
Aer Lingus announced a range of cost cutting measures in October including 1,500 job losses, a cut in distribution and marketing and the reduction of long haul services.
The unions said they would fight the job cuts at the time, however they appear to have relented marginally in light of Ryanair's latest takeover bid.
The unions rejected Ryanair's latest guarantees of recognition and the creation of 1,000 new jobs, made as part of the €1.40 per share all-cash offer.
"The corporate culture of Ryanair is just something that is a complete anathema to our members," said Niall Shanahan, communications officer with the IMPACT union.
Ryanair still hopes to win over Aer Lingus' 4,600-strong Employee Share Ownership Trust (ESOT), which administers a 14% shareholding in the airline.
The airline also appealed directly to the Irish government which owns 25% of Aer Lingus, promising them complete control over Aer Lingus' lucrative Heathrow slots backed by €100m guarantees.
Ryanair also said it would restore Shannon-Heathrow services in line with Irish national aviation policy.
But the Irish government said it would wait until Ryanair tabled a formal offer before giving its opinion.
The LCC said it would make a formal offer within the next two weeks, after which shareholders will have 30 to 40 days to decide.
Mr Mannion will present a defence strategy including new short haul services after vowing to keep Aer Lingus independent.
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