Aer Lingus considers move to UK to solve staff cost issues
21.11.09
Aer Lingus may quit Ireland and move its operations to Gatwick or Belfast in order to cut costs and stave off union problems, the Wall Street Journal repots. The Irish airline has applied to the UK's civil aviation authority for a UK operating license. If approved, the airline could legally move its corporate headquarters to Belfast or Gatwick, its two UK bases.
Currently, Aer Lingus is in tough negotiations with its unions to cut 676 jobs through voluntary layoffs. The company says it needs to make €100 million in savings by the end of 2011 to stay in operation. Aer Lingus has warned that if it does not get the labour cuts by November 30, it will look at a different plan to shrink the airline with compulsory layoffs and a reduction in routes. Moving to the UK would allow it to essentially start over and force workers to reapply for their jobs under the new UK operation.
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