Aer Lingus (EI, Dublin International) is reviewing the future of its bases at Cork and Shannon and is considering compulsory redundancies at both airports, the news site Cork Beo reported.
Having already informed the Irish government it may be forced to lay off up to 500 of its 4,500 employees, Aer Lingus CEO Sean Doyle warned staff in a video message on July 31 that the flag carrier cannot see any "meaningful resumption" of operations at Cork or Shannon and that the bases are potentially under threat.
"The catastrophic impact of covid-19 on the aviation sector has been compounded in Ireland by the implementation of the most restrictive travel policies in Europe and the failure to implement supports for the sector. Significant redundancies are required across the business. The redundancies will be on a voluntary basis if possible but may be implemented compulsorily if required," the airline said in a statement.
"Aer Lingus is also reviewing the scale of our flying programme from Cork and Shannon airports and the ongoing viability of our regional bases there,” it added.
The news emerged as Aer Lingus posted an operating loss of EUR316 million (USD372 million) for the six months to the end of June, a swing from an operating profit of EUR78 million (USD92 million) for the same time last year, according to figures from its parent IAG International Airlines Group. Passenger revenues dropped from EUR936 million (USD1.1 billion) to EUR315 million (USD370 million).
Neil McGowan, aviation sector organiser at the Services Industrial Professional and Technical Union (SIPTU), told RTÉ News that Ireland's biggest trade union will not discuss compulsory redundancies "in any circumstances" and urged the carrier to engage with it about a voluntary redundancy scheme.
The company is losing EUR1.5 million to EUR2 million (USD1.8-2.6 million) a day and the mood at Aer Lingus is "rock bottom" right now, McGowan said. The government must step in to help the airline, he stressed, otherwise Ireland will not have a functioning aviation sector after the crisis - a critical issue for an island economy.
