Tag Archives: msn 10291

Aer Lingus will probably “right size” its assets due to a lack of an Irish restart plan and continued losses

Aer Lingus reported an operating loss of €103 million in the first quarter. This followed a loss of €361 million in 2020.

The airline is currently dealing with COVID-19 restrictions on travel in Ireland.

The company is now saying it will need to “right size” its resources due to lack of an Irish Government restart plan for aviation in Ireland.

Parent IAG is “considering the necessary steps we need to take” for the airline to “survive,” according to CEO Luis Gallego , which was stated during the first quarter earnings call on May 7, 2021.

Last month the company stressed the need for a plan with this statement:

Aer Lingus called on Government to urgently facilitate the implementation of Ireland’s Aviation Restart Plan 2021.

Donal Moriarty, Chief Corporate Affairs Officer, Aer Lingus said:

“The need for a data-driven, risk-based Irish roadmap to reopen international travel is urgent. This will enable the restoration of connectivity and ensure that the economy is supported to deliver the recovery that will be vital for the country.

“With the publication of Ireland’s Aviation Restart Plan by the National Civil Aviation Development Forum (NCADF), a considered and effective exit strategy is outlined. What is critically important now is that the Government urgently takes the required steps to finalize the plan and enable its implementation.

“Our UK neighbors recognize the importance of outlining an exit strategy for the sector and have endeavored to do so in recent days.

“In the US, as the vaccination roll out continues apace, potential inbound tourists are considering where to travel later this year.

“The aviation sector works to long lead-times. Parameters for the opening of our economy including the restoration of international travel, aligned with our vaccination roll-out timeline and appropriate public health metrics, need to be developed.

“Government urgency and focus is therefore required to develop a clear and speedy pathway for the recovery of the aviation sector in this country.”