Aer Lingus Announces €40 million Savings

The troubled Aer Lingus has announced that savings of up to €50m will be made this year while projecting €47m for next year from its restructuring plan.

In a statement released today the airline also said it anticipated lower fuel costs will contribute to off setting the effects of recession and reduced capacity on longhaul flights.

The part state owned carrier also said it was expanding into currently un-served short-haul markets, partly with the help of a new franchise arrangement with Aer Arann.

Also today, the airline announced the appointment of two non-executive directors with immediate effect.

The appointment of Montie Brewer and Nicola Shaware to the board are said to be "part of Aer Lingus' ongoing commitment to best corporate practice " according to a spokesman this morning.

Montie Brewer is said to be "an airline veteran and a recognised industry innovator in airline pricing, sales and distribution strategies. Most recently he was President and CEO of Air Canada, where he successfully implemented many of the changes that are currently underway at Aer Lingus."

Meanwhile, Nicola Shaw is the Director of Bus - UK, Ireland and Germany for FirstGroup plc. She also previously worked in senior positions in both the UK Strategic Rail Authority and the Office of the Rail Regulator. She was also a transport consultant with Bechtel and Halcrow Fox and holds a BA in Modern History and Economics from Oxford University and an MSc in Transport from MIT.

Commenting on the appointments, Colm Barrington, Aer Lingus Chairman, said: "We are delighted to welcome Montie Brewer and Nicola Shaw to our board. Their knowledge, expertise and experience of the airline and transport sectors globally will make a major contribution to our board and to defining and implementing the changes required for the future success of Aer Lingus."

(DW/GK)