A Lingus Backs E140m Pension Payout

June 3, 2013
Aer Lingus's board of directors has backed a proposal to make a once-off contribution of E140 million to employee pensions as part of a deal to avoid possible strikes at the airline.

Aer Lingus's board of directors has backed a proposal to make a once-off contribution of E140 million to employee pensions as part of a deal to avoid possible strikes at the airline.

The deal aims to address a hole in a pension scheme which employees at Aer Lingus share with other aviation industry workers and which had a deficit of over 700 million euros at the end of 2011.

The threat of a large pay-out has weighed on the Aer Lingus share price in recent years.

The proposal will be put to shareholders following talks with unions and pension fund trustees and will be implemented if staff and union members also agree, Aer Lingus said in a statement today. Low-cost airline Ryanair, which owns 30 percent of Aer Lingus and this year failed in a third takeover attempt, has said it opposes a pension pay-out, but does not have enough votes to block it alone. Britain's Competition Commission is to rule by July on whether to force Ryanair to sell its stake in Aer Lingus due to competition concerns.

Copyright 2013 Media World Ltd.All Rights Reserved