(AERL.L) Aer Lingus Group PLC Buy/Sell

DUBLIN, Nov 18 (Reuters) - Irish airline Aer Lingus warned employees on Wednesday that it will implement an alternative cost cutting plan if agreement cannot be reached over proposed measures by the end of November.
Aer Lingus, which has fended off two hostile bids by Irish rival Ryanair, the industry leader in cutting costs, wants to reduce its annual operating costs by 97 million euros ($145.2 million) by shedding almost one-fifth of staff.
The SIPTU and UNITE trade unions, which represent ground staff and technical workers at the company, oppose the cuts and the airline said it had agreed to meet employee representatives.
Aer Lingus said compulsory redundancies could not be ruled out if the required savings had not been agreed in full when talks conclude on Nov. 30.
"These alternative means will include further reductions in capacity resulting from an uneconomic cost base, which in turn will lead to additional redundancies beyond those included in the plan," the former state carrier said in a statement.
"While the preference will be for such redundancies to be on a voluntary basis, compulsory redundancies cannot be ruled out," it added.
Aer Lingus, which has been rapidly been burning through its cash reserves, re-affirmed that it was essential the planned savings were urgently achieve in, what it described as, an extremely challenging operating environment.
(Reporting by Padraic Halpin; editing by Elaine Hardcastle) ($1=.6680 Euro) Keywords: AERLINGUS/

(padraic.halpin@reuters.com; Reuters Messaging: padraic.halpin.reuters.com@reuters.net; +353 1 500 1504)

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LONDON, Nov 18 (Reuters) - Aer Lingus Group Plc:

RNS Number : 7365C Aer Lingus Group PLC 18 November 2009

Update on Cost Reduction Plan

ISE: EIL1 LSE: AERL

Dublin, 18 November 2009: The Board of Directors of Aer Lingus Group plc (the 'Board') met today to review progress on its objective of delivering EUR97million of cost savings required as part of its Transformation Plan (the 'Plan') announced on 7 October, 2009.

Since the announcement of the Plan on 7 October, and as outlined in the Interim Management Statement of 9 November, it is clear the operating environment for Aer Lingus and airlines generally remains extremely challenging. In this context the Board has today re-affirmed that if Aer Lingus is to maintain its present scale of operations, it is essential that it urgently achieve the full EUR97million in savings as outlined in the Plan.

The Company has accepted an invitation from the National Implementation Body to conclude negotiations with employee representatives under the auspices of the Labour Relations Commission ('LRC').

At the conclusion of these talks on 30th November, the Board and Management will meet to review the results. In the event that the required EUR97million savings have not been agreed in full, the Board and Management will proceed to implement an alternative means of delivering the savings within the same timeframe set out under the Plan.

These alternative means will include further reductions in capacity resulting from an uneconomic cost base, which in turn will lead to additional redundancies beyond those included in the Plan. While the preference will be for such redundancies to be on a voluntary basis, compulsory redundancies cannot be ruled out.

The Board will closely monitor progress at the LRC talks over the coming week.

A further announcement may be made as appropriate

Press Enquiries:

Enda Corneille Shelia Gahan/ Brian Bell
Aer Lingus Wilson Hartnell Public Relations
Tel: +353 1 886 2000 Tel: +353 1 669 0030
+353 87 234 2409 (SG)
+353 87 243 6130 (BB)
Email: sheila.gahan@ogilvy.com
brian.bell@ogilvy.com

This information is provided by RNS The company news service from the London Stock Exchange

MSCEAPFPFEPNFFE

DUBLIN, Nov 17 (Reuters) - Aer Lingus Group Plc:

DUBLIN, Nov 13 (Reuters) - Ryanair Holdings PLC:

RNS Number : 1601C
  Aer Lingus Group PLC
  09 November 2009
   

Aer Lingus Group plc

ISE: EIL1            LSE: AERL

Interim Management Statement 

Dublin, London, 9 November 2009:  Aer Lingus Group plc ("Aer Lingus" or the "Group") today issues an interim management statement covering the period from 1 July 2009 to 30 September 2009, representing the third quarter of the Group's financial year. 

Performance overview - Third quarter - three months to 30 September 2009

Total revenues decreased by 9.7% during the quarter compared to the same period in 2008.  Flown passenger numbers increased by 7% year-on-year to 3.08 million. This comprised a 10.0% increase in passengers on short-haul and a 13.2% decrease on long-haul. Average passenger revenue in the period fell by 14.8% year on year.

Short-haul capacity, measured in available seat kilometres (ASKs), increased by 10.5% in the quarter to 30 September 2009 compared to the same period in 2008. Long haul-capacity decreased by 18.0% in the quarter. Overall flown load factor has increased by 1.3 percentage points to 80.4% compared to the same period in 2008, with short haul flown load factor up by 1.4 percentage points to 82.0 %, and long haul flown load factor up by 0.6 percentage points versus 2008 to 77.8%.  

Yields continue to reflect the poor market conditions and weak economic environment. Short-haul average fare fell by 12.3% year on year for the same period. This decline was partly offset by an increase of 8.5% in ancillary revenue per passenger. Long haul average fare fell by 17.0% year on year. Overall average fare for the quarter declined 17.6% on the same period last year.

Cash flow and balance sheet

Net cash was EUR399.9 million as at 30 September 2009. This represents a decrease of 38.8% since 31 December, 2008 (EUR653.9 million), and reflects an outflow of EUR107 million in respect of restructuring costs, provided for in 2008, the final payments for two new A330 aircraft delivered in the first half, and the net cash flow from operating activities. 

Fuel hedging

Based on an estimated unhedged fuel cost of US$696 per tonne for the remaining two months of the year, Aer Lingus expects its blended fuel rate to be US$864 per tonne for the 2009 full year. The Group has extended its hedging to 53% of the estimated 2010 full year tonnage at a rate of US$778 per tonne and 9% of the estimated 2011 full year tonnage at a rate of US$734 per tonne.  

New Chief Executive and Transformation Plan

Our new Chief Executive, Christoph Mueller, joined Aer Lingus Group on 1 September 2009. The board is confident that Christoph has the knowledge and experience to lead the executive management team in this crucial period in the airline's history. 

On 7 October 2009 Aer Lingus announced a Transformation Plan to reduce costs, remove legacy work practices and improve revenue, which will position the Group to compete more effectively against a peer group with significantly lower operating costs. As announced, the proposed changes under the Transformation Plan are expected to yield operating costs savings, excluding fuel, of EUR97 million per annum, consisting of EUR74 million in staff costs savings and EUR23 million in non-staff costs savings. 

The first stage of the Transformation Plan will deliver substantial reductions in operating costs, enhance productivity and implement changes in the Group's pension arrangements. The second phase will focus on delivering revenue growth through a series of commercial initiatives and further cost savings through a series of business process improvements.  

The first stage has commenced and management is currently engaged in a consultation period with employees and unions and expects this process to be concluded on or about 18 November 2009. A further A330 will be removed from long haul service as part of the change bringing long haul winter operations to five units and Summer 2010 to a maximum of six units.

Network and fleet developments

On 4 August 2009 the Group announced that agreement had been reached with Airbus on a revised delivery schedule for three A330s and two A350s. Aer Lingus negotiated the revised delivery schedule at no additional cost to the Group. The new delivery schedule and the related revised pre-delivery payment schedules for these aircraft will result in significant reductions in medium term capital commitments for the Group. 

Aer Lingus also negotiated the termination of an existing lease of an A330 aircraft in October, 18 months ahead of schedule, and has also reached agreement for the early termination of an additional lease of an A330 in March 2010, 14 months ahead of schedule (which will again reduce medium term capital commitments).

Aer Lingus continues to evaluate the business' network and fleet needs and optimise fleet ownership costs. As part of this, on 7th October 2009 the airline published an RFI for Sale or Sale and Leaseback of a number of its aircraft. A significant number of expressions of interest have been received as at the closing date and the company will seek to pursue the disposal of some units in the fleet should there not be the demand or appropriate cost base to operate them.

Outlook

The business continues to experience challenging conditions. However the actions taken to remove capacity on underperforming parts of the network has had a positive impact on stabilising load factors and yields while reducing operating costs. While the fall in yield year on year continues, the pace of decline in average fares does not appear to be accelerating currently. Cost increases in the form of higher fuel prices, airport and navigation charges together with further expected GDP declines and unemployment increases in our major markets, will mean that we must continue to reduce any costs within our control so that we can cope with continued falling fares, compete and maintain balance sheet strength.  

ENDS

For further information please visit www.aerlingus.com or contact:

Investor Relations Enquiries:                             Press Enquiries:

Shane O'Keeffe                                                                      Shelia Gahan/Brian Bell    

Aer Lingus                                               Wilson Hartnell Public Relations

Tel: +353 1 886 3038                                                           Tel:           +353 1 669 0030

Email: investor.relations@aerlingus.com                                         +353 87 234 2409 (SG)
                                                                                                                       +353 87 243 6130 (BB)    
                                                                                                      Email:      shelia.gahan@ogilvy.com 
                                                                                        brian.bell@ogilvy.com

Jonathan Neilan

K Capital Source

Tel:    +353 1 6633680

+353 86 231 4135

Email: jneilan@KCapitalSource.com     

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
IMSUUGPPGUPBGRQ

RNS Number : 1334C
  Aer Lingus Group PLC
  06 November 2009
   

Aer Lingus Group plc

ISE: EIL1        LSE: AERL

Date for Interim Management Statement

Dublin, 6 November 2009: Aer Lingus Group plc ("Aer Lingus") announces that it will issue an Interim Management Statement ('IMS') at 7.00am on Monday, 9 November 2009. The IMS will be available on the Aer Lingus website www.aerlingus.com

ENDS

For further information please visit www.aerlingus.com or contact:

Shane O'Keeffe                                                                      Shelia Gahan/Brian Bell    

Aer Lingus                                               Wilson Hartnell Public Relations

Tel: +353 1 886 3038                                                            Tel:    +353 1 669 0030

Email: investor.relations@aerlingus.com                                   +353 87 234 2409 (SG)
                                                                                                                  +353 87 243 6130 (BB)    
       
                      Email:      shelia.gahan@ogilvy.com
                                                                                                                        brian.bell@ogilvy.com

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
MSCGGMGMDVGGLZM

DUBLIN, Nov 6 (Reuters) - Aer Lingus Group Plc:

RNS Number : 0839C Aer Lingus Group PLC 06 November 2009

Aer Lingus Group plc

ISE: EIL1 LSE: AERL

Traffic Statistics - October 2009

Dublin & London, 6 November 2009: Aer Lingus Group plc ("Aer Lingus"), today announced traffic statistics for the month of October 2009.

Aer Lingus' total passenger numbers in October 2009 were 902,000 a decrease of 0.2% compared to October 2008. Short haul passengers were 821,000, a 3.3% increase on October 2008 and long haul passengers were 81,000, a 25.7% decrease on October 2008.

Aer Lingus' overall load factor in the month was 74.6%, an increase of 1.3 points compared to October 2008, with capacity decreasing by 10.4%. Short haul load factor was 77.0%, a decrease of 0.1 points on 2008, with capacity increasing by 6.0%. Long haul load factor was 70.1%, an increase of 1.3 points on 2008, with capacity decreasing by 30.4%.

Detailed traffic statistics are set out on the following page.

For further information please visit www.aerlingus.com or contact:

Shane O'Keeffe Shelia Gahan/ Brian Bell
Aer Lingus Group plc Wilson Hartnell Public Relations
Tel: +353 1 886 2059 Tel: +353 1 669 0030
Email: investor.relations@aerlingus.com +353 87 234 2409 (SG)
+353 87 243 6130 (BB)
Email: sheila.gahan@ogilvy.com
brian.bell@ogilvy.com

Aer Lingus Scheduled Traffic Statistics

October Year-to-date
2009 2008 Change % 2009 2008 Change %

Passengers (thousands)1
Short haul 821 795 3.3 8,276 7,894 4.8
Long haul 81 109 (25.7) 922 1,085 (15.0)

Total 902 904 (0.2) 9,198 8,979 2.4

Revenue passenger kilometres (RPKs) (millions)1
Short haul 885 836 5.9 8,898 8,245 7.9
Long haul 434 612 (29.1) 5,017 6,175 (18.8)

Total 1,319 1,448 (8.9) 13,915 14,420 (3.5)

Available seat kilometres (ASKs) (millions)
Short haul 1,150 1,085 6.0 11,240 10,559 6.4
Long haul 619 890 (30.4) 6,982 8,656 (19.3)

Total 1,769 1,975 (10.4) 18,222 19,215 (5.2)

Passenger load factor (%)2 % Points % Points
Short haul 77.0 77.1 (0.1) 79.2 78.1 1.1
Long haul 70.1 68.8 1.3 71.9 71.3 0.6

Total 74.6 73.3 1.3 76.4 75.0 1.4

Detailed traffic statistics may be subject to change.

Notes

1 Earned seats and earned revenue passenger kilometres include seats and passenger kilometres respectively that are sold regardless of whether the passenger shows for a flight, as once a flight has departed the passenger is generally not entitled to change flights or obtain a refund.

2 Earned revenue passenger kilometres as a percentage of available seat kilometres

ENDS

This information is provided by RNS The company news service from the London Stock Exchange

MSCFSWFUISUSEFF

DUBLIN, Oct 18 (Reuters) - Ireland's Aer Lingus must push through severe cost savings announced earlier this month if it is to survive, the country's Transport Minister and 25 percent stake-holder Noel Dempsey said on Sunday.
Aer Lingus, which has been rapidly been burning through its cash reserves, is to cut almost a fifth of its 4,000 staff to reduce annual operating costs by 97 million euros ($145 million) by 2011.
However, its shareholder structure has been a stumbling block to reform in the past and could hamper the implementation of the plan, which the airline wants to complete by Nov. 18.
"Aer Lingus is faced with a very fundamental question - survival or a continuation for perhaps maybe two years. I don't think there's any choice any more," Transport Minister Noel Dempsey told national broadcaster RTE.
"There is little doubt in my mind having seen how the cash has been burned up in Aer Lingus over the last 12 months that unless they get the savings of up to 100 million euros, we will not be talking about an Aer Lingus in a few years time."
Irish rival Ryanair has a nearly 30 percent stake in Aer Lingus, while the government and Aer Lingus staff, past and present, own 25 percent and 14 percent, respectively. Unions are also represented on the airline's board.
Aer Lingus said it was bracing itself for possible strikes after the SIPTU and UNITE trade unions, which represent ground staff and technical workers at the company, opposed the cuts.
The IMPACT trade union which represents hundreds of Aer Lingus cabin crew and pilots said the proposals were as severe as expected and that it would consider its response.
"I think they should sit down and should talk ... It's a huge difficulty for the company and the workforce in the company, but the choice is fairly stark -- to carry on with the reforms as outlined or as modified during talks," Dempsey said.
Asked if he supported the management in bringing in the cuts, the minister said: "I support the fact that they have to reorganise, they have to change, they have to be able to compete and I would also be very supportive of both sides sitting down, working through those cuts and achieving what they need to achieve."
Aer Lingus, which has fended off two hostile bids from Ryanair, one of the most cost-efficient players in the industry, is driving through the reforms to compete with thriftier airlines.

(Reporting by Padraic Halpin, editing by Will Waterman)

($1=.6702 Euro) Keywords: AERLINGUS/ (padraic.halpin@reuters.com; Reuters Messaging: padraic.halpin.reuters.com@reuters.net; +353 1 500 1504)

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DUBLIN, Oct 14 (Reuters) - Rival Irish airlines Ryanair and Aer Lingus and Cityjet, part of the Air France-KLM group, issued a rare joint statement on Wednesday urging Dublin to scrap an airport tax.
The Irish government imposed the 10-euro ($14.9) departure tax a year ago in the first of its two emergency budgets so far to bring one of Europe's biggest deficits in line with EU guidelines.
It is planning further austerity measures worth 4 billion euros in the 2010 budget, which will be presented in December.
"Since the 10-euro tourist tax was imposed, the monthly traffic at Dublin Airport has fallen by up to 15 percent," the chief executives of the three airlines said in the joint statement.
"In 2009, Dublin Airport will lose some 3 million passengers, as traffic falls from 24 million to approximately 21 million," they said.

($1=.6710 euros)

(Reporting by Andras Gergely; Editing by Greg Mahlich) Keywords: RYANAIR AERLINGUS/TAX (andras.gergely@reuters.com; +35315001518; Reuters Messaging: andras.gergely.reuters.com@reuters.net)

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FRANKFURT, Oct 12 (Reuters) - Deutsche Lufthansa is on course to meet its cost-cutting targets, the chief executive of the German flagship carrier said on Monday.
"We are on track in all areas," Lufthansa Chief Executive Wolfgang Mayrhuber told journalists at a news conference for the relaunch of its on-board broadband internet service FlyNet.
To safeguard profitability in the downturn, Lufthansa has said it plans to cut 1 billion euros ($1.47 billion) of annual costs by 2011. It will cut several hundred jobs at its passenger airlines business and said it could defer some aircraft orders.
Lufthansa has forecast a full-year operating loss for its cargo business and has said it could also post a loss in its passenger airlines if it cannot cut costs fast enough.
Lufthansa will introduce on-board internet access again on its long-haul flights from next year, allowing passengers to send SMS messages, transfer data via smartphones and use the internet via laptops.
The airline's first attempt more than six years ago failed to take off properly as Lufthansa's partner at the time, Boeing , withdrew the service. Lufthansa now cooperates with Panasonic.
"On long-haul routes we offer business travellers, in particular, a range of communications options on a par with powerful hotspots or upmarket hotels," Mayrhuber said.
Lufthansa plans to start the service on 50 aircraft next year and the remainder of its fleet in the following one to two years, it said. On-board broadband will so far only be introduced on Lufthansa planes and not other airlines it owns.
Lufthansa shares were up 1.4 percent at 11.965 euros by 1046 GMT, in line with the German blue-chip DAX index. (Reporting by Eva Kuehnen, Editing by Michael Shields) ($1=.6795 Euro) Keywords: LUFTHANSA/

(eva.kuehnen@thomsonreuters.com; +49 69 7565 1244; Reuters Messaging: eva.kuehnen.reuters.com@reuters.net)

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BANGALORE, Oct 12 (Reuters) - The following corporate finance-related stories were reported by media on Monday:

DUBLIN, Oct 11 (Reuters) - Ryanair could use a potential acquisition of Aer Lingus as a vehicle to buy Britain's bmi from Deutsche Lufthansa, Ryanair's chief executive was quoted as saying on Sunday.
Michael O'Leary has said earlier it was highly unlikely he would make a third bid for the rival Irish airline but Ryanair remained interested should the government ask it to bail out the loss-making former Irish state carrier.
If the Irish government and the EU no longer objected to a tie-up on competition grounds, O'Leary said Ryanair could buy Aer Lingus and use it as a vehicle to buy bmi, getting its hands on its valuable landing slots at London's Heathrow airport.
"Why couldn't Aer Lingus buy bmi and expand at Heathrow?," O'Leary told the Sunday Tribune newspaper in an interview.
Aer Lingus would then continue to fly into primary airports like Heathrow and Paris Charles de Gaulle, with Ryanair servicing "secondary" airports, the paper said.
Lufthansa has said it was considering various options, ranging from continuing bmi's operations to selling the company.
Aer Lingus this week told staff it would have to axe more than 600 jobs or face a downward spiral of selling assets that would ultimately threaten its survival as an independent airline.
It said it would base much of its future growth on expansion in the UK, including London and Belfast, while cutting costlier jobs in the Republic of Ireland.
(Reporting by Andras Gergely; editing by Simon Jessop) Keywords: RYANAIR/BMI

(andras.gergely@reuters.com; +35315001518; Reuters Messaging: andras.gergely.reuters.com@reuters.net)

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By Carmel Crimmins

DUBLIN, Oct 8 (Reuters) - Irish budget airline Ryanair said on Thursday that if rival Aer Lingus keeps slashing costs and fails to grow the government would eventually ask it to bail out the former state carrier.
"If they continue down this road of constant restructuring programmes, constant job cuts and no growth the government will ultimately be forced to come to Ryanair and ask it to rescue it," Ryanair Chief Executive Michael O'Leary told national broadcaster RTE.
Aer Lingus's new Chief Executive Christoph Mueller told staff on Wednesday he planned to axe nearly one in five jobs and cut salaries to secure the loss-making carrier's survival.
The airline has struggled to compete with Ryanair, Europe's largest budget airline and one of the most cost-efficient players in the industry.
Ryanair, still growing profit unlike rivals such as British Airways, has twice tried to take Aer Lingus over and earlier this year saw a bid at 1.4 euros a share rejected by the government, which owns 25 percent of the airline.
O'Leary said it was highly unlikely Ryanair, which has a 29 percent stake in its rival, would table a third bid for Aer Lingus, whose shares were down 2.7 percent at 0.72 euros in afternoon trade, wiping out much of the gain made on the back of Wednesday's restructuring.
Ryanair was 0.3 percent weaker at 3.479 euros.

(Editing by Hans Peters and David Holmes) Keywords: RYANAIR AERLINGUS/ (carmel.crimmins@reuters.com; Reuters Messaging: carmel.crimmins.reuters.com@reuters.net; +353 1 500 1529)

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DUBLIN, Oct 8 (Reuters) - Irish budget airline Ryanair said on Thursday that if rival Aer Lingus kept slashing costs and failed to grow the government would eventually ask it to bail out the former state carrier.
"If they continue down this road of constant restructuring programmes, constant job cuts and no growth the government will ultimately be forced to come to Ryanair and ask it to rescue it," Ryanair Chief Executive Michael O'Leary told the national broadcaster RTE.
O'Leary said it was highly unlikely Ryanair would table a third bid for Aer Lingus after two previous offers were rebuffed.

(Reporting by Carmel Crimmins; Editing by Hans Peters) Keywords: RYANAIR/AERLINGUS (carmel.crimmins@reuters.com; Reuters Messaging: carmel.crimmins.reuters.com@reuters.net; +353 1 500 1529)

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RNS Number : 4724A Ryanair Holdings PLC 08 October 2009

GOVERNMENT SHOULD EXPLAIN WHY IT REJECTED RYANAIR'S DEC 2008 OFFER,

WHICH WOULD HAVE CREATED 1,000 NEW JOBS IN AER LINGUS,

WHEN YESTERDAY THEY ANNOUNCE 670 JOB LOSSES

Ryanair, Ireland's favourite airline today (Thursday, 8th October 2009) called on the Department of Transport, to explain why it rejected Ryanair's December 2008 offer for Aer Lingus, which guaranteed to double the size of Aer Lingus' short-haul fleet and create 1,000 new jobs in the airline over a 5 year period, when yesterday the Board of Aer Lingus, which is controlled by the Irish Government and the trade unions announced 670 jobs losses, as well as pay and pension cuts in Aer Lingus.

Ryanair's Dec 2008 offer document for Aer Lingus guaranteed to double Aer Lingus' short-haul fleet from 30 to over 60 aircraft, create 1,000 new jobs for pilots, cabin crew and engineers over a 5 year period, while at the same time reducing Aer Lingus' fares, removing its fuel surcharges, securing its brand, Heathrow slots and connectivity.

Ryanair's offer would also have provided Aer Lingus with a strong financial partner, at a time when all other airlines across Europe are collapsing or consolidating into one of the big four European airlines led by Air France, BA, Lufthansa and Ryanair.

Since the Minister for Transport rejected Ryanair's Dec 2008 offer, Aer Lingus has:

By Tim Hepher

PARIS, Oct 7 (Reuters) - European airlines are slashing more than 2,000 jobs and scrambling for extra revenue to beat the industry's worst recession in a decade in a strategy risking winter labour disruption.
Aer Lingus said on Wednesday it will axe nearly one in five jobs and cut salaries to secure its survival, even if it means seeing off strikes by angry staff.
The loss-making Irish carrier moved a day after British Airways announced plans to cut the equivalent of 1,700 cabin crew, drawing a threat of strikes in coming months.
"Job cuts seem to be extreme and draconian and an overreaction to the current difficult economic climate", said Gerry McCormack, national industrial secretary of the SIPTU union which represents Aer Lingus ground staff.

"The imposition of any compulsory redundancies, cuts in pay or unilaterally imposed changes to conditions or work practices will be resisted," said Brian Gormley, a regional officer at UNITE, which represents technical workers at the airline.
In Spain, national carrier Iberia said it was considering whether to charge passengers for checking bags, borrowing a practice invented by low-cost rivals and which has spread to traditional carriers in the United States.
U.S. airlines have been ratcheting up their bag-check fees though analysts say they risk alienating flyers.
Against a backdrop of projected global airline losses this year of $11 billion, United Airlines this week offered passengers the right to check in baggage for a year for $249.
Spanish consumer asssociation FACUA said it would sue Iberia if the airline charged for baggage.
Both Iberia and Aer Lingus face threats to their independence due to the shocks battering Europe's fragmented airline industry.
Iberia is in talks to create Europe's third largest airline with BA.
Aer Lingus has been struggling to avoid succumbing to 30 percent shareholder Ryanair and warned it may seek more cuts if savings of 74 million euros are not achieved by 2011.

"Employees and politicians stand between a rock and a hard place. While difficult to swallow, these proposals offer the best shot at survival and independence," Dublin-based brokerage Bloxham said of the Aer Lingus restructuring plan.
An Aer Lingus employee had a different view.
"We are no fools," he told the national broadcaster. "We know the environment we are in, we know that times are tough, especially in the airline industry, but we had no anticipation of how drastic and how much this is going to affect our working life and our home life."
Shares in Aer Lingus jumped 16 percent in early trading and were up nearly eight percent at 0.77 euros by 1538 GMT, making it one of the top gainers in an Irish market up 0.6 percent.

For a related share price graphic, click on http://graphics.thomsonreuters.com/109/EZ_ARLN1009.gif .

Airlines have been reporting signs that demand has begun to stabilise, helping sector stocks in Europe recover about a third since their low point in March, led by Air France-KLM.
Air France-KLM said its September traffic fell 3.7 percent, in line with the previous two months well below a 9.4 percent slump n March.
It boosted the proportion of seats sold by cutting capacity more aggressively but predicted continued pressure on revenues, sending its shares down 1.75 percent.
Investors fear capacity could quickly be reinstated as airlines grab at the first signs of recovery. Meanwhile losses are being inflated by price-cutting and oil prices near $70.
Singapore Airlines and Air New Zealand reported improving demand this week but cautioned a sustained recovery was still far from certain.
British Airways carried 0.8 percent fewer passengers in September compared with the same month a year ago but the proportion of seats sold rose, it said on Monday.
Shares in Finnair slipped after the Finnish carrier said leisure traffic fell 30 percent in September and warned demand was expected to fall further.
Scandinavian airline SAS said yields, or average revenue per seat sold, remained under pressure.
(Additional reporting by Padraic Halpin, Robert Hetz, Jason Webb, Andras Gergely, and Paul Day; Editing by David Cowell) Keywords: AIRLINES/ Keywords: AIRLINES/ Keywords: AIRLINES/

(+331 4949 5452 paris.equities@reuters.com)

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By Tim Hepher

PARIS, Oct 7 (Reuters) - European airlines are slashing more than 2,000 jobs and scrambling for extra revenue to beat the industry's worst recession in a decade in a strategy risking winter labour disruption.
Aer Lingus said on Wednesday it will axe nearly one in five jobs and cut salaries to secure its survival, even if it means seeing off strikes by angry staff.
The loss-making Irish carrier moved a day after British Airways announced plans to cut the equivalent of 1,700 cabin crew, drawing a threat of strikes in coming months.
"Job cuts seem to be extreme and draconian and an overreaction to the current difficult economic climate", said Gerry McCormack, national industrial secretary of the SIPTU union which represents Aer Lingus ground staff.

"The imposition of any compulsory redundancies, cuts in pay or unilaterally imposed changes to conditions or work practices will be resisted," said Brian Gormley, a regional officer at UNITE, which represents technical workers at the airline.
In Spain, national carrier Iberia said it was considering whether to charge passengers for checking bags, borrowing a practice invented by low-cost rivals and which has spread to traditional carriers in the United States.
U.S. airlines have been ratcheting up their bag-check fees though analysts say they risk alienating flyers.
Against a backdrop of projected global airline losses this year of $11 billion, United Airlines this week offered passengers the right to check in baggage for a year for $249.
Spanish consumer asssociation FACUA said it would sue Iberia if the airline charged for baggage.
Both Iberia and Aer Lingus face threats to their independence due to the shocks battering Europe's fragmented airline industry.
Iberia is in talks to create Europe's third largest airline with BA.
Aer Lingus has been struggling to avoid succumbing to 30 percent shareholder Ryanair and warned it may seek more cuts if savings of 74 million euros are not achieved by 2011.

"Employees and politicians stand between a rock and a hard place. While difficult to swallow, these proposals offer the best shot at survival and independence," Dublin-based brokerage Bloxham said of the Aer Lingus restructuring plan.
An Aer Lingus employee had a different view.
"We are no fools," he told the national broadcaster. "We know the environment we are in, we know that times are tough, especially in the airline industry, but we had no anticipation of how drastic and how much this is going to affect our working life and our home life."
Shares in Aer Lingus jumped 16 percent in early trading and were up nearly eight percent at 0.77 euros by 1538 GMT, making it one of the top gainers in an Irish market up 0.6 percent.

For a related share price graphic, click on http://graphics.thomsonreuters.com/109/EZ_ARLN1009.gif .

Airlines have been reporting signs that demand has begun to stabilise, helping sector stocks in Europe recover about a third since their low point in March, led by Air France-KLM.
Air France-KLM said its September traffic fell 3.7 percent, in line with the previous two months well below a 9.4 percent slump n March.
It boosted the proportion of seats sold by cutting capacity more aggressively but predicted continued pressure on revenues, sending its shares down 1.75 percent.
Investors fear capacity could quickly be reinstated as airlines grab at the first signs of recovery. Meanwhile losses are being inflated by price-cutting and oil prices near $70.
Singapore Airlines and Air New Zealand reported improving demand this week but cautioned a sustained recovery was still far from certain.
British Airways carried 0.8 percent fewer passengers in September compared with the same month a year ago but the proportion of seats sold rose, it said on Monday.
Shares in Finnair slipped after the Finnish carrier said leisure traffic fell 30 percent in September and warned demand was expected to fall further.
Scandinavian airline SAS said yields, or average revenue per seat sold, remained under pressure.
(Additional reporting by Padraic Halpin, Robert Hetz, Jason Webb, Andras Gergely, and Paul Day; Editing by David Cowell) Keywords: AIRLINES/ Keywords: AIRLINES/

(+331 4949 5452 paris.equities@reuters.com)

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Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

By Tim Hepher

PARIS, Oct 7 (Reuters) - European airlines are slashing more than 2,000 jobs and scrambling for extra revenue to beat the industry's worst recession in a decade in a strategy risking winter labour disruption.
Aer Lingus said on Wednesday it will axe nearly one in five jobs and cut salaries to secure its survival, even if it means seeing off strikes by angry staff.
The loss-making Irish carrier moved a day after British Airways announced plans to cut the equivalent of 1,700 cabin crew, drawing a threat of strikes in coming months.
"Job cuts seem to be extreme and draconian and an overreaction to the current difficult economic climate", said Gerry McCormack, national industrial secretary of the SIPTU union which represents Aer Lingus ground staff.

"The imposition of any compulsory redundancies, cuts in pay or unilaterally imposed changes to conditions or work practices will be resisted," said Brian Gormley, a regional officer at UNITE, which represents technical workers at the airline.
In Spain, national carrier Iberia said it was considering whether to charge passengers for checking bags, borrowing a practice invented by low-cost rivals and which has spread to traditional carriers in the United States.
U.S. airlines have been ratcheting up their bag-check fees though analysts say they risk alienating flyers.
Against a backdrop of projected global airline losses this year of $11 billion, United Airlines this week offered passengers the right to check in baggage for a year for $249.
Spanish consumer asssociation FACUA said it would sue Iberia if the airline charged for baggage.
Both Iberia and Aer Lingus face threats to their independence due to the shocks battering Europe's fragmented airline industry.
Iberia is in talks to create Europe's third largest airline with BA.
Aer Lingus has been struggling to avoid succumbing to 30 percent shareholder Ryanair and warned it may seek more cuts if savings of 74 million euros are not achieved by 2011.

"Employees and politicians stand between a rock and a hard place. While difficult to swallow, these proposals offer the best shot at survival and independence," Dublin-based brokerage Bloxham said of the Aer Lingus restructuring plan.
An Aer Lingus employee had a different view.
"We are no fools," he told the national broadcaster. "We know the environment we are in, we know that times are tough, especially in the airline industry, but we had no anticipation of how drastic and how much this is going to affect our working life and our home life."
Shares in Aer Lingus jumped 16 percent in early trading and were up nearly eight percent at 0.77 euros by 1538 GMT, making it one of the top gainers in an Irish market up 0.6 percent.

For a related share price graphic, click on http://graphics.thomsonreuters.com/109/EZ_ARLN1009.gif .

Airlines have been reporting signs that demand has begun to stabilise, helping sector stocks in Europe recover about a third since their low point in March, led by Air France-KLM.
Air France-KLM said its September traffic fell 3.7 percent, in line with the previous two months well below a 9.4 percent slump n March.
It boosted the proportion of seats sold by cutting capacity more aggressively but predicted continued pressure on revenues, sending its shares down 1.75 percent.
Investors fear capacity could quickly be reinstated as airlines grab at the first signs of recovery. Meanwhile losses are being inflated by price-cutting and oil prices near $70.
Singapore Airlines and Air New Zealand reported improving demand this week but cautioned a sustained recovery was still far from certain.
British Airways carried 0.8 percent fewer passengers in September compared with the same month a year ago but the proportion of seats sold rose, it said on Monday.
Shares in Finnair slipped after the Finnish carrier said leisure traffic fell 30 percent in September and warned demand was expected to fall further.
Scandinavian airline SAS said yields, or average revenue per seat sold, remained under pressure.

(Additional reporting by Padraic Halpin, Robert Hetz, Jason Webb, Andras Gergely, and Paul Day; Editing by David Cowell) Keywords: AIRLINES/ (+331 4949 5452 paris.equities@reuters.com)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.