Aer Lingus Drops Routes After Huge Losses

The troubled Airline, Aer Lingus, has announced massive cuts, after its stratospheric losses last year.

Many staff are now fearing for their jobs as the announcement of a €22 million loss cripples the one-time State airline.

Dermot Mannion, Aer Lingus Chief Executive, said: "The seasonally weaker first half has been marked by extremely difficult market conditions in the form of unprecedented fuel costs, slowing economic growth in our main markets and a weakness in dollar and sterling.

"Fuel is the most significant cost within the business and the €56.5 million increase in our first half fuel costs contributed significantly to a loss of €22.3 million."

The airline also warned future losses could be substantially higher unless changes are made, but the airline chiefs have refused to release explicit details on exactly what changes are in store.

However, it is believed cuts are likely to heavily affect the company's 4,000-strong workforce, most probably in back-office areas, as well as pay cuts for some staff.

Fuel, which comprises about 35% of Aer Lingus costs, has doubled in price in the past year and has had a major impact on the world's airlines, as well as Ireland's own Ryanair.

Also, in the North, the newly introduced Aer Lingus Belfast to London Heathrow route is now running more than 60,000 behind the airline's abandoned Shannon to Heathrow link.

However, the airline has today pledged to continue the route.

Chief Executive Dermot Mannion told BBC Radio Ulster that he was in for the "long haul" and there was no question of pulling out of the route, despite the disappointing numbers recorded and the continuing national and worldwide problems flowing from the credit crunch and the hugely inflated fuel costs now hitting all the airlines.

Meanwhile, UK-Canadian company Zoom has cancelled all flights, blaming the cost of aviation fuel for the airline's sudden failure.

Flight Z4467 was to fly from Cardiff to Belfast International Airport and then travel to Vancouver today, but has been grounded when the airline said it was suspending all operations.

In North America, passengers wanting to fly to Northern Ireland were also stranded.

See: Zoom Airline 'Crashes'

(DW/JM)(BMcC)