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Dermot Mannion Resigns

  • 06-04-2009 9:31am
    #1
    Registered Users, Registered Users 2 Posts: 2,073 ✭✭✭


    The chief executive of Aer Lingus, Dermot Mannion, has resigned this morning with immediate effect.

    The airline's chairman Colm Barrington will take over Mr Mannion's position until a successor is appointed. A statement from the company said its board had accepted Mr Mannion's decision to step down.

    Aer Lingus, which made a loss of almost €120m in 2008, says the search for a new chief executive has begun.

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    Mr Mannion's departure will come as a surprise given that recession aside, life at the airline today is relatively calm compared to recent times.

    He signed a three year-contract in 2005 and has been on a rolling one year contract since the autumn of last year.

    Since taking over in 2005 from Dubai-based airline Emirates, he has steered the airline out of state ownership, fended off two hostile take-over bids from Ryanair and controversially axed the Shannon to Heathrow service before partly reversing the decision as flights resumed between the two airports last month.

    Mr Mannion had led a constant focus on cost against a background of unpredictable fuel prices, strike threats, cut-throat competition and economic downturn in its key markets of Europe and the US. Hundreds of employees have left the airline.

    The airline made a loss of €120m last year and it is anticipated that it will be loss making this year too. Sources at the airline say Mr Mannion's decision to leave was amicable.

    Among the internal favourites to succeed Mr Mannion are deputy chief Niall Walsh and finance boss, Sean Coyle who recently joined the airline from Ryanair.

    In the statement this morning, Dermot Mannion said his decision to step down will 'allow a new CEO to bring fresh thinking and new ideas to the business'.

    Chairman Colm Barrington said the airline's board wanted to 'record our appreciation for his loyalty and dedication to Aer Lingus'.

    'Against the backdrop of challenging market conditions, the board and management team are focused on maximising revenues, reducing operating costs while maintaining a strong balance sheet to deliver value for all shareholders,' Mr Barrington added.

    Aer Lingus' share price closed at 67 cent on Friday, down around two thirds from a year ago and under half the €1.40 a share price Ryanair offered for the company in December.

    Meanwhile, Aer Lingus' first European flight from London Gatwick Airport, its new international base, took off this morning to Malaga.

    Aer Lingus will fly from Gatwick to eight European routes. Today, Malaga and Knock were the first destinations to be launched, with Vienna, Nice and Munich launching on April 20, with Faro and Zurich to follow on April 26.

    Aer Lingus shares were up 4.5% to 70 cent in Dublin in early trade this morning.

    http://www.rte.ie/business/2009/0406/aerlingus.html


Comments

  • Closed Accounts Posts: 987 ✭✭✭diverdriver


    Interesting, I thought he was on the brink of leaving anyway. So not surprised at anything except the timing. The word is that he's not well liked in EI. Perhaps in the end he was pushed.


  • Closed Accounts Posts: 1,084 ✭✭✭Barname


    Interesting business culture.

    The man oversees the effective burning of €200 million euros over the past 12 months and he is rewarded with a financial payoff for quitting.

    loser quitters = financial winners

    go figure.


  • Moderators, Motoring & Transport Moderators Posts: 10,005 Mod ✭✭✭✭Tenger


    Barname wrote: »
    The man oversees the effective burning of €200 million euros over the past 12 months and he is rewarded with a financial payoff for quitting.

    Someone please help me explain to Barname:

    EI (and DM as CEO) have not 'burnt EUR200M in the past 12 months. There are predictions that EI could 'burn' this cash in 2009.

    'Could' and 'has' are very different terms.


    While I am not sorry to see the back of DM I feel the timing was very bad as it overshadowed the commencement of EI services from the new LGW this morning.


  • Closed Accounts Posts: 1,084 ✭✭✭Barname


    Bramble wrote: »
    Someone please help me explain to Barname:

    EI (and DM as CEO) have not 'burnt EUR200M in the past 12 months. There are predictions that EI could 'burn' this cash in 2009.

    'Could' and 'has' are very different terms.


    While I am not sorry to see the back of DM I feel the timing was very bad as it overshadowed the commencement of EI services from the new LGW this morning.

    Denial....... not just a river in Egypt......

    The AerLingus certified accounts for YR08 declare a loss of €120 Million

    We are now in April of 2009 and the first 3 months of this year are making any quarter last calendar year look golden. €200 Million burn for past 12 months, I will be proven to be correct.

    When the accounts are published the horrifying fact for AerLingus shareholders is that the cash burn will be seen to be running minimum €200 Million for the past 12 Months.

    Now lets address your ''09 €200 million' If this is what Aerlingus are saying
    it expects to burn through about €200 million of its €654 million cash pile as passenger numbers tumble
    then, based on previous performance (or lack of it) then prepare for a lot worse.

    e.g.
    Aer Lingus posted a 2008 loss of €119 million -- just months after Mr. Mannion persuaded investors to reject a second takeover bid from Ryanair at €1.40 a share with predictions it would show a profit. Mr. Mannion had previously persuaded investors to reject an offer of €2.80 a share in 2006. Aer Lingus's share price has since sunk below €0.70.
    AerLingus share price is in an irretrievable spiral and now stands at 25% of Ryanairs first offer. For the record AerLingus spent €6 Million of shareholders cash to avoid the latest takeover.

    So, there you have it

    Aerlingus SPENT €6 Million rejecting last years t/o attempt and only proceeded to sting shareholders again.


  • Closed Accounts Posts: 26,567 ✭✭✭✭Fratton Fred


    I can't help thinking that Aer Lingus are trying to copy the "Pile it high, sell it cheap" model that Ryanair use, but they have a far too expensive cost base to be able to do that.

    The National Carrier should offer something a bit better than cheap and cheerful pay for everything flights, I think this is where they are going wrong.

    oh, incidentally, the head of DAA should resign, this morning the place was an absolute bloodt nightmare. You could hardly get through the doors of the terminal, let alone queue up for security.


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  • Closed Accounts Posts: 1,084 ✭✭✭Barname


    DAA

    Dublin Airport Atrocity

    DAA

    Jobs for Berties Constituents funded by the Highest regional airport charges in Europe.


  • Moderators, Motoring & Transport Moderators Posts: 10,005 Mod ✭✭✭✭Tenger


    Barname wrote: »
    For the record AerLingus spent €6 Million of shareholders cash to avoid the latest takeover.

    Aerlingus SPENT €6 Million rejecting last years t/o attempt and only proceeded to sting shareholders again.


    And they spent 30M on the previous takeover defense. A defense they should have had ready before the IPO. Hence another reason for my dislike of DM and his tenure at EI.

    In relation to the EUR120M losses,look closely at the details. It consists of 103M restructuring costs which will save at least 55M per year running the airline (so break even in 2011) with only EUR16.9M as actual operating costs. In relation to the rest of the troubled European airline industry EI did quite well in 2008. EI are expanding with new aircraft and product coming onstream,with a new revenue generating venture planned for next year.

    And since when is DUB a regional airport,you definitely sound like MoL now!

    And the EI share price is articficially deflated due to the less than 25% liquidity of the stock and the presence of FR stopping larger airlines investing as LH did with Bmi. So no one wants to buy the stock regardless of the performance of the airline,which yes is lower than forecast.


  • Closed Accounts Posts: 1,084 ✭✭✭Barname


    Bramble wrote: »
    It consists of 103M restructuring costs which will save at least 55M per year running the airline (so break even in 2011)

    The problem is that at the current cash burn there will be no money left by mid /end of 2011


  • Closed Accounts Posts: 1,326 ✭✭✭Bearcat


    that means their bust by 2011?


  • Closed Accounts Posts: 1,084 ✭✭✭Barname


    Bearcat wrote: »
    that means their bust by 2011?

    correct, unless they get their house in order they will not see 2012


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  • Registered Users, Registered Users 2 Posts: 12,683 ✭✭✭✭Owen


    Politely reminding users ... yet again ... that there is to be no airline bashing. That includes the DAA, and all other Airport Authorities too.


  • Closed Accounts Posts: 1,084 ✭✭✭Barname


    with all due respect Ned.

    We the Irish people own 25% of Aer Lingus and I believe we have a right to comment upon its mismanagement within an open public forum.

    [MODEDIT] Figures, and specific companies named/shamed removed as per charter, and libel thread.


  • Closed Accounts Posts: 1,326 ✭✭✭Bearcat


    Ned with the greatest respect, I dont think there is a bashing element about the thread except realisitc debate and dialogue. Otherwise close the thread which just negates the being of an aviation forum here.


  • Registered Users, Registered Users 2 Posts: 12,683 ✭✭✭✭Owen


    There are rules to be followed in this forum - just like all forums on boards. Boards is a website that allows posters to communicate, as long as they follow those rules. Not airline bashing is one of them, and posting anything that could have boards.ie sued is another - libelous content.

    You can feel free to discuss Airport Authorities in general in a new thread, but discussing one specific one here, and mentioning figures, and how the country was mislead, and finances ruined is opening up boards.ie ltd to legal turmoil.

    You have all been warned. The next person doing this gets a permaban.


  • Closed Accounts Posts: 26,567 ✭✭✭✭Fratton Fred


    ned78 wrote: »
    There are rules to be followed in this forum - just like all forums on boards. Boards is a website that allows posters to communicate, as long as they follow those rules. Not airline bashing is one of them, and posting anything that could have boards.ie sued is another - libelous content.

    You can feel free to discuss Airport Authorities in general in a new thread, but discussing one specific one here, and mentioning figures, and how the country was mislead, and finances ruined is opening up boards.ie ltd to legal turmoil.

    You have all been warned. The next person doing this gets a permaban.

    Could you maybe give a definition of "Airline Bashing"?

    If I report constant bad service, is this bashing if it is true? surely libel is only libel if it is incorrect and damaging, stating the truth is not libellous.


  • Registered Users, Registered Users 2 Posts: 12,683 ✭✭✭✭Owen


    If I report constant bad service, is this bashing if it is true? surely libel is only libel if it is incorrect and damaging, stating the truth is not libellous.

    Boards.ie's solicitors have given us very clear warnings. There's a sticky concerning this, and a separate charter on what's not acceptable in this forum. Nobody seems to bother reading either for some reason.

    From the legal stuff sticky :

    To give an example of what's okay, and not, a good example was given in another forum. If I get a bag of chips in McDunnigans and it's a bit cold, uncooked and I say so, that's fine, as it's my statement of a personally known fact. However, if I say McDunnigans is a hell hole of culinary proportions, and everything they cook comes with salmonella on the side, well then that's libel.

    Just to add to this, in many other Forums, questioning a Moderators advice, and decisions on thread, rather than in PM's is considered a banning offence. I'm not that type of Mod. I'm here to let everyone chat, civilly, but also to protect boards.ie ltd as part of my remit. Part of that includes reminding people what's acceptable to post, and what's not. If you have an issue, post elsewhere.


  • Closed Accounts Posts: 1,326 ✭✭✭Bearcat


    sorry for not pm-ing and appreciate the legal heads up.


  • Closed Accounts Posts: 14,575 ✭✭✭✭FlutterinBantam


    Good man Ned,very erudite post indeed.


  • Moderators, Motoring & Transport Moderators Posts: 10,005 Mod ✭✭✭✭Tenger


    Bearcat wrote: »
    ..... I dont think there is a bashing element about the thread except realisitc debate and dialogue.

    People want dialogue and debate rather than inflammatory statements that are not backed up by facts.


  • Closed Accounts Posts: 1,084 ✭✭✭Barname


    Barname wrote: »
    with all due respect Ned.

    We the Irish people own 25% of Aer Lingus and I believe we have a right to comment upon its mismanagement within an open public forum.

    [MODEDIT] Figures, and specific companies named/shamed removed as per charter, and libel thread.

    ABSOLUTELY RIDICULOUS

    My posting was COMPLETELY FACTUAL and therefore libel is not an issue

    boards.ie it would appear are corporate slaves. Oh the lure of cash.

    RIP


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  • Registered Users, Registered Users 2 Posts: 12,683 ✭✭✭✭Owen


    And despite being back from a 5 day ban, Barname merits another week's ban. Barname, a subsequent offense from you will gladly be a permenant ban from boards.ie - if you don't like the rules here (And judging by your growing infractions from all forums, not just A&A), go somewhere else.


  • Moderators, Motoring & Transport Moderators Posts: 10,005 Mod ✭✭✭✭Tenger


    Barname wrote: »
    ABSOLUTELY RIDICULOUS

    My posting was COMPLETELY FACTUAL and therefore libel is not an issue

    boards.ie it would appear are corporate slaves. Oh the lure of cash.

    To counter this statement of factuality:

    Barname claims EI have 'burnt EUR200m in 12 months'.
    The cash reserve was 805M in June 2008. Minus 120M losses for year ending 2008 makes it 685M. Based on an estimate of EUR50M possible losses for 2009, that 25M lost up to June 2008. So EI have 'burnt' EUR145M in 12months.....that is if we believe Barname.


  • Registered Users, Registered Users 2 Posts: 3,941 ✭✭✭pclancy


    Thanks Ned you beat me to it again. Barname was getting beyond ridiculous. Nice history of bans in such a short space of time too!

    Guys its quite simple, don't slag anyone (human or corporate) and don't speak badly about something if you're not qualified with factual data or experience.

    It's not for any kind of sadistic fun or corporate suckery that Boards insists this, is because of the "libel society" we now live in where any printed media (including online) can be sued for something expressed within it. Thanks to this law mods all now read pretty much every single post on this website and check it for libel or defamation stuff like this so that Boards doesnt get in trouble so please, just keep it civil and have enjoyable debate not just tabloid-type slander.


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