Tough times ahead for Aer Lingus
Hot on the heels of British Airways’ move to dismiss 1,700 staff and effect a two-year pay freeze, the Irish airline, Aer Lingus, followed suit with a cost-cutting recipe of its own; 776 employees are being pink-slipped and many salaries and perks will also be slashed. Even though the move would save the struggling company slightly more than $145 million over the next two years, it sent the company stock down 16%. And Aer Lingus needs every cent it can spare; the company lost almost $110 million in the first six months of this year. But what’s probably the worst news for the struggling airline is that its CEO, Christoph Mueller, sees outlook in its core markets as "poor", with no near-term recovery expected. One almost hopes he was hedging his bets.