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Up to 500 jobs at risk at IAG’s Aer Lingus as cuts some routes

ALN

Up to 500 jobs are at risk at International Consolidated Airlines Group SA’s Aer Lingus as it cuts ‘poor-performing routes’, the airline has said.

In a statement released on Thursday, the Irish flag carrier said changes are ‘essential’ to improve its operating margins, which it needs to do to attract future investment.

It said the cuts come in the context of wider issues it is facing, including a ‘challenging macroeconomic environment’, increased competition on transatlantic routes, and increased supplier, carbon, and fuel costs.

Senior management roles have already been reduced by around 25%, the airline said.

However, it has proposed a further 25% reduction of head office employee costs.

A 6% cut to long and short-haul flights will take effect from late September and continue into next summer.

All customers affected by these changes will be ‘contacted directly and provided with re-accommodation or refund options’, the statement said.

It continued: ‘Aer Lingus will consult with employees and their representatives regarding the Head Office function changes and the network changes.

‘These changes could see up to 500 employees leaving the airline. With many fleet decisions upcoming, Aer Lingus will also engage with employees and their representatives on cost efficiency and productivity so that the airline can be an investment case within the IAG group.

‘The more cost efficient and productive the airline is, the more it will be able to fulfil its network and growth ambition.

‘The consultation and engagement process will focus on reducing redundancies and potential future redundancies and on what needs to be done to secure future investment in the business.’

IAG shares fell 0.6% to 451.90 pence each on Thursday morning in London.

By Bairbre Holmes, Press Association

Press Association: News

source: PA

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