[Article] Aer Lingus planning foreign hub

Ruu_Old

From rte.ie/business. Sorry if posted already elsewhere.

Aer Lingus is aiming to open its first foreign hub by the start of next year.

A spokeswoman said today that the airline is looking at possible locations to establish a base abroad in order to expand the scale and return of the airline's business.

She said that no decisons have been made yet on locations, but that Aer Lingus has targets to open the new hub by early 2008.

Aer lingus said it has flagged the expansion plans and new work practices in the 'Programme for Continuous Improvement 2007' which was circulated to workers.

This document, which contain plans that included lower shift premiums and fewer holidays, has seen workers at the airline earlier this week voted in favour of industrial action that could cause travel chaos for thousands of people.

The result of the ballot of the 1,800-strong Siptu membership at Aer Lingus showed an overwhelming majority endorsing industrial action up to and including all-out strike.

Aer Lingus shares were unchanged at €2.75 in Dublin early this afternoon.

MICKEYG

Ruu wrote:

From rte.ie/business. Sorry if posted already elsewhere.

Good for them. I think that is where they will get the growth. As long as SIPTU dont force Irish conditions on workers they should be all right. Their business mdoel is very good and with open skies maybe coming they might be flying longhaul from places other than Dub and SNN (unless our beloved Govt decide to make them stop at Shannon).

RadarControl

Don't know where they would even start a hub. If in the UK reckon it would be Manchester or Birmingham. Cannot see them taking on BA at Heathrow or Ryanair at Stansted. Mainland Europe again is a mystery where they would go. Doubt they will start a hub in France that is for sure. Airbus will be glad of this news they might get a few more orders for planes.

Zebra3

http://www.unison.ie/irish_independent/stories.php3?ca=9&si=1775638&issue_id=15248

Foreign hub plan as Aer Lingus takes off

AER Lingus is to spread its wings by establishing its first base outside Ireland.

The move is part of an expansion which will allow the airline to establish 15 new European routes between destinations outside Ireland. The airline has already shortlisted three airports for its first foreign hub.

Industry sources said it is likely the base will be the first of several which will give Aer Lingus major new opportunities to increase revenue.

It could also help make the small but very profitable airline into a significant European player.

The airline has told trade union representatives that the changes in working conditions it is currently proposing are absolutely necessary if the plans for a new base are to go ahead.

The changes include provisions which allow Aer Lingus to employ people at foreign bases, on "local market rates", or to relocate existing employees.

SIPTU, which represents about half of all 3,500 Aer Lingus employees, served strike notice on the company yesterday, giving the company 14 days notice of industrial action.

Although serving strike notice does not necessarily mean the union will strike, sources suggested a strike was the most likely outcome.

The company is seeking a number of changes to employees' working conditions which will see some staff availing of fewer holidays while others will receive less overtime pay.

Specifically staff are being asked to accept a standard 37.5-hour working week, and to take one day in lieu for working a bank holiday instead of two.

There was further bad news for the airline last night when Aer Lingus group of unions representing 175 ground maintenance engineers and workers voted "massively" for industrial action over the company's cost-cutting contracts.

It is expected the ALGU will serve notice for strike action on the company today to take affect from Monday fortnight.

IMPACT, which represents Aer Lingus pilots and many of the cabin crew, is engaged in talks with the airline. Aer Lingus has already brought in the new conditions for new employees and plans to bring them in for existing employees on March 1.

The new conditions were outlined in a document called "Programme for Continuous Improvement 2007" which was presented to unions before Christmas. That document would also have given the trade union representatives their first hint of the airline's plans to establish foreign bases.

Document

It states that the new bases will employ workers at "local market rates" rather than at the rates which currently apply to staff.

Aer Lingus currently has two bases, one in Dublin and one at Cork. It also has a base at Shannon but this is only for maintenance purposes.

The airline is planning to tie down the location of its first foreign base in the coming months with a view to the new routes coming on stream in January of next year.

Tickets for the new routes are expected to be offered for sale in October.

The identity of the three airports which have been shortlisted by the airline is a closely guarded secret.

Meanwhile, the airline has written to the Labour Relations Commission requesting that it refer the matter of the new terms and conditions to the National Implementation Body (NIB) "for urgent consideration".

The NIB polices national wage agreements.

SIPTU has called for the intervention of the Labour Court.

However, it only wants the court to decide on whether Aer Lingus is in breach of previous agreements, rather than deal with the substantive issues.

Tom McEnaney

Can't imagine the unions liking that..."The changes include provisions which allow Aer Lingus to employ people at foreign bases, on "local market rates" as I'd assume they're planning to open the base in Poland, Czech Rep, or Slovakia.

Ruu_Old

MICKEYG wrote:

Good for them. I think that is where they will get the growth. As long as SIPTU dont force Irish conditions on workers they should be all right. Their business mdoel is very good and with open skies maybe coming they might be flying longhaul from places other than Dub and SNN (unless our beloved Govt decide to make them stop at Shannon).

Would be nice if they could wrap up the open skies alright, it has been going on for far too long.:(

talkingclock

Zebra3 wrote:

I'd assume they're planning to open the base in Poland, Czech Rep, or Slovakia.

Poland was my first thought aswell. big new market and cheap wages...

Tom Dunne

I don't think a European hub would work as there's so much competition on short-haul in Europe.

I would suspect they are looking at somewhere in the US or the Middle East. Remember Dermot Manion worked for Emirates before he came to Aer Lingus. Long haul is where the money is.

MICKEYG

tom dunne wrote:

I don't think a European hub would work as there's so much competition on short-haul in Europe.

I would suspect they are looking at somewhere in the US or the Middle East. Remember Dermot Manion worked for Emirates before he came to Aer Lingus. Long haul is where the money is.

They are an Irish registered airline so I believe they can only operate routes within the EU or from Ireland to outside the EU.

bk

MICKEYG wrote:

They are an Irish registered airline so I believe they can only operate routes within the EU or from Ireland to outside the EU.

I believe that the Irish government is trying to negotiate a deal with the US, to allow Aer Lingus (and maybe Ryanair) operate out of the US.