At least 727 jobs are set to go, on top of reductions already announced by the loss-making carrier, and pay cuts are being implemented.
It will axe 489 positions in operational areas and some support areas, in addition to approximately 100 staff already set to leave before 2010 at the end of their fixed term contracts.
New IT systems will also cut costs by removing manual processes, leading to a further loss of 238 jobs.
Staff whose basic pay exceeds €35,000 per year will see their pay packets shrink and restrictive old work practices will change to make the carrier more efficient and competitive.
The executive and management teams have agreed to a 10% reduction in salaries, which will be frozen at least until the end of 2011, and the non-executive directors have unanimously agreed to a further 10% reduction in their fees, on top of the 20% reduction taken earlier this year.
A six-week consultation with staff and unions is under way and set to finish by 18 November.
Aer Lingus also aims to broaden its customer base ‘beyond the current dependency on the Irish consumer’ through the use of an Airline Operating Certificate in the UK.
Christoph Mueller, Aer Lingus chief executive, said: ‘The outlook in each of our current core markets is poor and, in line with the macroeconomic outlook, we do not expect any near-term recovery.
‘Aer Lingus cannot continue with an operating cost base, which is structurally uncompetitive when compared to that of its closest peers.’
See also:
Lower fares hit Aer Lingus (27/08/2009)
Fleet restructure for Aer Lingus (04/08/2009)
Aer Lingus expands Gatwick network (09/06/2009)
Fuel costs and Aer Lingus push Ryanair into red (02/06/2009)
Aer Lingus issues profits warning (29/04/2009)