Aer Lingus chief quits amid orders rift

Published on Monday 6 April 2009 21:08

DERMOT Mannion, chief executive of Irish national carrier Aer Lingus, quit yesterday, amid reports of a rift with investors over strategy.

His resignation, which follows a protracted takeover attempt by rival Ryanair, took place with immediate effect "to bring fresh thinking and new ideas to the business", Mannion said in a statement.

According to reports from Ireland, investors have grown uneasy about the airline's plans to order new jets for long-haul travel at a time when the industry is in decline and Aer Lingus is losing money.

Recently the airline announced that it made a pre-tax loss of 119.7 million (109m) in 2008 and that it was unlikely to make a profit this year.

Interim chief executive Colm Barrington is expected to meet investors this week.

The discontent also follows Aer Lingus' defence against Ryanair, which offered 1.40 a share to buy the airline.

While the defence was successful, Aer Lingus's share price is now about half the level offered by Ryanair, whose chief executive, Michael O'Leary, is seen as having successfully distracted management.