Aer Lingus to fill Ryanair void?

AER Lingus could be winging its way to the rescue by keeping its Shannon-New York service flying through the winter and then helping to plug the east-bound gap, if Ryanair carries out its threat of a 75% reduction in flights from April. But, there is going to be a price to pay at Shannon.

In talks that have been ongoing for some weeks, Aer Lingus has responded to calls, from business interests in particular, to make changes in the timing and aircraft size on the first Shannon departure for JFK New York.
The airline is also talking with the Shannon Airport Authority about bringing in short haul connections beyond its present Shannon-Heathrow run. But delivery hinges on Shannon making it worth the airline’s while and finding ways around the €10.50 per passenger charge for advance processing of passengers through the US Customs and Border Protection pre-inspection station, which Aer Lingus has so far snubbed.
The Shannon decisions that the airline will be arriving at in the coming weeks will be strongly influenced by the latest survival plan, which has severe consequences for cabin crew based at Shannon.
Aer Lingus plans involving a rethink of its New York winter service and the promise of east-bound services were aired when senior airline management were grilled during a Joint Transport Committee hearing on the airline’s restructuring programme, which involves the shedding of 670 jobs over two years and other cuts calculated to reduce operating costs by €97million a year.
With two Clare TDs, Fianna Fáil Deputy Timmy Dooley and Deputy Pat Breen of Fine Gael on the Transport Committee, Shannon figured prominently during the questioning of Aer Lingus director of public affairs, Enda Corneille and the airline’s director of human resources, Michael Grealy.
Mr Corneille stated that a “fundamental review” of Shannon operations is taking place and a Shannon study is being carried out, while the airline engages in talks with the Shannon Airport Authority.
Having put the off-season continuation of the direct service to New York on hold at the end of a summer season when the airline declared half-year losses of €93million, Aer Lingus is now looking at a new format.
While Shannon transatlantic operations are profitable in the high season but loss making in the winter for the past 10 years, Mr Corneille told TDs and senators that decisions to be made in the coming weeks would focus on the type of aircraft, the type of operation and how it will be crewed.
He accepted the promptings of the Clare deputies that the New York flight should depart at an earlier time and that a smaller capacity aircraft, along the lines of the competing Shannon-Newark service operated by Continental, is also under consideration.
However Mr Corneille indicated that Aer Lingus will not be making use of the advance inspection facilities through the US Customs and Border Protection station, because the €10.50 per passenger charge “is not something that we feel we can pass on to the customer”. However, he added that conversations are taking place on ways in which the CBP cost could be overcome, or if some subvention could be brought to bear.
In urging serious thought on making use of the time-saving for passengers provided by the CBP, Deputy Pat Breen warned the Aer Lingus representatives, “You are losing ground to the competition and the delays of up to three hours at JFK are going to cost Aer Lingus in terms of numbers at the year end”.
The Aer Lingus management duo did not go into crew arrangements for whatever configuration of aircraft may come onto the Shannon-JFK route.
However, visible disquiet was accompanied by sharp comments from Transport Committee members of all parties when it was confirmed that, while 62 temporary cabin crew have been made redundant and the axe hangs over more than 100 cabin crew at Shannon, the airline is recruiting cabin crew in the US for a new base in what is described as “a new legal entity” joint venture under which Aer Lingus aircraft will be used on a Washington-Madrid service, starting from March 2010.
Union representatives also told the hearing that cabin crew who had taken 2008 cuts, saving the airline €15million a year, were facing a reduction of 30% and more in the pay scale and freezing of current staff on their present scales “for life”.
Deputy Breen commented, “With the pride in the shamrock brand that staff were prepared to make so many sacrifices for, with a pay scale that starts at €16,754 and rises only to €18,754, you will get a ‘yellow pack’ shamrock”.
Indicating Aer Lingus’ interest in stepping into the gap that may be left at Shannon if the stripping of Ryanair services goes ahead, Mr Corneille said the airline is engaging with Shannon Airport Authority in exploring ways to improve results at Shannon but he stressed that bringing in more Shannon short-haul services would hinge on charges.
He reminded the Joint Transport Committee hearing that the 2007 decision to abandon the Shannon-Heathrow service had been reversed once the Shannon Airport Authority had come round to levying charges on Aer Lingus that were on a par with the charges to Ryanair.