Aer Lingus says it will create 500 jobs if £1bn takeover goes through

Aer Lingus has backed claims that more than 500 jobs would be created on new transatlantic routes if a £1 billion bid for the carrier goes through.

Aer Lingus aircraft at Dublin airport Image by Brian Lawless/PA Wire

Stephen Kavanagh, due to takeover as Aer Lingus chief executive early next month, said there would be limited redundancies if the offer by the International Airlines Group – owner of British Airways and Iberia – gets clearance. The new Aer Lingus boss refused to detail potential job cuts but suggested a deal with a new owner would see redeployment and new opportunities for existing staff.

“The opportunity that the IAG proposal brings is accelerated growth, but also sustainable growth,” Mr Kavanagh said. The incoming chief executive said the prospect of a deal to grow Aer Lingus on global markets with the support of an international airline business like IAG may never come about again.

No timetable has been set for the Irish Government to decide on whether to sell its 25.1% stake in Aer Lingus. The offer – at £1.90 (2.55 euro) a share – is facing stiff opposition from backbenchers and the opposition over fears of the impact on regional airports in Ireland such as Shannon and Cork and after a five year guarantee to retain valuable London-Heathrow slots, tabled as part of the IAG bid, expires. Mr Kavanagh told a parliamentary hearing in Dublin that job creation would be direct airline staff but also in spin-offs including at airports, support services, hotels and other areas.

Chairman Colm Barrington said a successful takeover by IAG would accelerate plans to add two new US destinations to the Irish airline’s schedules, one a city on the east coast and one on the west. He said it would add 200 jobs immediately while growth over the next five years could add more than 500 jobs and possibly outdo projections outlined by IAG chief executive Willie Walsh. “I think we can do a little better than that,” the chairman said. “We don’t have to agree with him (Mr Walsh) on everything – he doesn’t own us yet.” The chairman added: “I think we could grow our current long haul, transatlantic fleet from its current 10, close to 20 – that could be more than 500 jobs if we reach those targets.”

The parliamentary hearing into the IAG offer has now heard from the two airline companies involved and taken the views of pilots, trade unions and business leaders in Dublin.

(Press Association)