IAG could create up to 500 extra jobs at Aer Lingus

IAG chief executive Willie Walsh admitted on Thursday that there would be possible job losses at Aer Lingus if the company successfully takes over the Irish airline but said they would not be on the scale of those seen at Iberia.

Mr Walsh said that if Aer Lingus was acquired it would remain independent within the larger IAG structure and could be built into a stronger brand.

While admitting that some jobs would likely be lost in the short term if IAG’s bid for the airline proves successful, Mr Walsh dismissed reports that between 1,000 and 1,200 positions could go as “complete nonsense.”

He suggested that up to 500 extra jobs could be created over the next five years at the Irish airline if the deal is approved.

Impact trade union warned last month that one quarter of all Aer Lingus workers could lose their job if the takeover proves successful based on the experience of Iberia after its merger with British Airways in 2011.

“We’ve been very clear on this that there would be some job losses at Aer Lingus in administrative areas that would in effect be duplicated by roles we have elsewhere so we would be looking to reduce some jobs in the head office but the big story is we that would grow the airline,” said Mr Walsh.

“Aer Lingus is a relatively small airline and so doesn’t have the strength that IAG has in dealing with big suppliers so it could tap into the benefit that we would give. We can provide Aer Lingus with the buying power we have with airline manufacturers that they can’t get as a standalone airline,” he said.

The IAG chief, who formerly ran Aer Lingus, said the Irish airline could see a wave of new jobs coming down the line as IAG had big plans to grow the business.

“Aer Lingus has in mind to add about one long haul aircraft a year over the next four or five years bringing their fleet up to about 14 aircraft. We believe we can add more to that. It could be as much as one aircraft a year. The jobs created by that growth would be very significant and these are good quality jobs that would be based in Ireland,” he said.

Speaking on Today with Sean O’Rourke on RTE radio, Mr Walsh said for every additional aircraft to come on stream, about 100 direct jobs would be created, leading to as many as 500 more jobs over the medium term.

“We think it’s a good airline, it’s a very strong brand and it would fit well into the IAG structure. This for us is an exciting prospect. We think Aer Lingus has done a very good job in recent years, particularly in developing Dublin as a transatlantic hub and we see a lot of potential to expand that,” he said.

Mr Walsh also said that job losses at Iberia following the 2011 merger with British Airways that led to the creation of IAG, had nothing to do with that deal but was as a result of the global recession.

The IAG chief will appear before the Oireachtas Transport Committee later on Thursday as he continues to press the case for the group’s €1.36 billion bid to buy Aer Lingus.

Mr Walsh can expect something of a frosty reception given that a number of politicians opposed to the Aer Lingus sale are members of the committee.

He met with Minister for Transport Paschal Donohoe to discuss IAG’s proposed €2.55 a-share offer for the Irish airline. He said the airline is “nowhere near” walking away from its bid despite opposition to the proposed deal from some politicians.

The Government holds a 25.1 per cent stake in the business on behalf of the State, while the Dáil has to approve any sale of that interest.

IAG is offering the Government and business groups a legally-binding veto over the sale of the airline’s landing and take-off rights at Heathrow Airport, which are seen as critical to international access.

It is also willing to guarantee that they will be used exclusively to service Irish routes for five years.

In related news, Ryanair said it will continue its legal battle against a UK Competition and Markets Authority (CMA) order for it to sell most of its stake in Aer Lingus, the company.

Ryanair said it would appeal the case to the UK Supreme Court after Britain’s Court of Appeal rejected the airline’s appeal against the CMA decision.