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fox1 · Guest

Source: Airwise

August 25, 2004

Irish state airline Aer Lingus is to scrap business class seats on
European flights as part of its realignment as a low-fares carrier,
and consequently may also quit the oneworld alliance, the company
said on Wednesday.

The airline, which is rebranding itself after a brush with
bankruptcy in 2001, said its membership of the international eight
airline network was "under review".

"It is likely to be decided at a oneworld chief executives' meeting
in Dublin in November," an Aer Lingus spokeswoman said.

The alliance, which includes British Airways and American Airlines,
allows members to coordinate flight schedules and ticketing.

However, the decision by Aer Lingus to end business class on all
European flights from April 2005 means it would be unable to offer
links to business passengers connecting to its flights from other
oneworld alliance airlines.

Aer Lingus's board has approved a three-year business plan which
calls for 1,300 job cuts to compete with budget airlines such as
Ryanair and easyJet.

Under the plan, Aer Lingus will scrap cargo services on all but
transatlantic and German routes from January 2005 as part of
cost-cutting plans. From September, it will end a reciprocal
"interline" deal with other airlines on carrying cargo.

The Irish government is debating the airline's future after its
chief executive Willie Walsh asked for permission last month to lead
a management buyout.

Ireland's biggest union, SIPTU, said senior officials were meeting
on Wednesday to discuss the proposed job cuts after members voted to
strike if managers imposed redundancies.

"The union does not accept there is a need to sacrifice large
numbers of jobs," SIPTU branch secretary Christy McQuillan said in a
statement.

Aer Lingus lost business after the September 2001 attacks in the
United States. It has since cut costs by EUR344 million (USD$417.9
million) or 30 percent, and axed 2,000 jobs or a third of its work
force.

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