Aer Lingus shares its renewed focus
Published: 28 Jan 2010
Aer Lingus has shared that its focus now is on preserving cash and to forge closer links with bigger, full-service airlines while ditching its focus on being a low-cost carrier.
In an interview with The Irish Times, Aer Lingus’ chief executive Christoph Mueller set out his stall to make Aer Lingus “Ireland’s civilised airline”. He also mentioned that the airline was not in danger of running out of cash and could return to profitability in the first quarter of 2011 following agreement with staff groups on a restructuring deal to save €97 million a year. Aer Lingus said it made a “small profit” in the second half of 2009 but this was outweighed by the €94 million loss in the first six months of the year.
The airline plans to target markets in Asia for growth by feeding Irish travellers into one of Europe’s three major hubs: Heathrow, Frankfurt and Paris. According to ft.com, while Aer Lingus hopes to lure business travellers with faster check-in times, pre-paid meals and central airports, rather than the secondary ones for which Ryanair is known, it will not focus on the quality lounges, free food and drinks associated with full-service airlines.
Alliance
Meanwhile, a report by Bloomberg indicated that Aer Lingus Group Plc aims to join a global airline alliance to add destinations and attract more passengers after dropping its “no-frills” business model. Dublin-based Aer Lingus will begin offering paid-for extras including lounge access, newspapers and croissants in 2011 and views membership of a global grouping as a logical next step, Mueller said after an investor meeting in London.
Aer Lingus pulled out of the Oneworld alliance, which includes British Airways Plc, in 2006, saying the revenue benefits weren’t sufficient.
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