Bussiness
Aer Lingus Pilots Vote To Strike As IAG Reallocates New Airbus A321XLR
Summary
- Aer Lingus pilots vote to strike amidst a pay dispute with the airline.
- The pilots, represented by the Irish Air Lines Pilots’ Association (IALPA), are demanding better pay and better working conditions.
- While Aer Lingus posted an operational loss in Q1 2024, it ended 2023 with an operating profit of €225 million ($244.5 million).
Aer Lingus pilots have voted to strike after they failed to reach an agreement with the Irish airline, even though the Irish Labour Court had recommended that the flight crew accept a pay increase totaling 9.25% retroactively covering the period between January 1, 2023, and January 1, 2024.
Failing to reach an agreement
According to the Labour Court, around 800 Aer Lingus pilots and the airline could not resolve their dispute at a local level, and thus, the disagreement was subject to a Conciliation Conference under the auspices of the Workplace Relations Commission. After the two sides, with the pilots being represented by the Irish Air Lines Pilots’ Association (IALPA), failed to reach a consensus there, the Labour Court received the case, scheduling hearings on April 22 and April 29.
Photo: Bradley Caslin | Shutterstock
Thus, the court recommended that the pilots accept a pay increase totaling 9.25%, including retroactive pay increases from January 1, 2023, July 1, 2023, October 1, 2023, and January 1, 2024. The total pay increase would amount to 9.25%. However, the Labour Court received a claim for a pay increase totaling 23.8%, split as follows:
- 7% with effect from November 1, 2022
- 6% with effect from March 1, 2023
- 6.1% with effect from March 1, 2024
- 4.7% with effect from March 1, 2025
However, the court recommended that the two parties take a fresh and stabilized approach, which would allow for continuing dialogue in a reasonable manner to solve the issue of satisfactory wage growth across the aforementioned period. In the interim, the court offered the two sides the opportunity to agree on changes to leave rosters and associated arrangements.
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The two parties already had a dispute solved by the UK’s Central Arbitration Committee (CAC).
Reversing policies
According to a report by Reuters, IALPA members working at Aer Lingus were voting for a potential strike, with the vote running until June 12. The union recommended that its members vote in favor, potentially resulting in strike action in the near future. According to the union, Aer Lingus has failed to reverse some of the policies it had introduced during the pandemic, with the pilots’ last raise coming in July 2019.
Photo: Aer Lingus
Mark Tighe, the president of IALPA, told Ireland-based RTE that the airline’s offer did not reflect its earnings over the past few years. Tighe added that pilots made huge sacrifices in their pay and working conditions during the pandemic. As a result, any new pay deal must reflect the loss of earnings due to inflation while also bringing the Irish carrier’s pilots’ earnings to match the pay earned by pilots working at competing airlines.
As a result of the pay dispute, Aer Lingus has confirmed that its parent company, International Airlines Group (IAG), had diverted the first two Airbus A321XLR aircraft bound for the Irish airline to Spain’s Iberia. In a statement to RTE, the Irish airline said it could not confidently tell the parent company that it could achieve certain cost structure adjustments in its operations.
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Aer Lingus already lost out on being the launch operator for the same reason.
Seasonal losses
When IAG unveiled its Q1 2024 financial results, with the group ending the period with a net loss of €4 million ($4.3 million), the company disclosed that Aer Lingus ended Q1 with an operating loss of €82 million ($89.1 million). However, IAG explained that typically, the first three months of the year are the least profitable, which was why Aer Lingus and Vueling’s losses reflected the nature of the business, namely a focus on leisure travel that is more seasonal.
Photo: Bradley Caslin | Shutterstock
Nevertheless, in 2023, Aer Lingus’ operating profit was €225 million ($244.5 million), with the airline’s operating margin being 9.9%, a 6.7% year-on-year (YoY) improvement. Its capacity, measured in available seat kilometers (ASK), compared to 2022 and 2019, grew by 20.3% and 4.4%, respectively, IAG detailed.
UPDATE: 2024/06/06 16:04 EST BY RYTIS BERESNEVIČIUS
Aer Lingus has provided a statement to Simple Flying.
“IALPA’s commencement of a ballot seeking approval for industrial action by Aer Lingus pilots is entirely unnecessary. We are surprised that IALPA commenced this ballot before they met directly with the airline – a meeting with management was being arranged but had not yet taken place.”
According to Aer Lingus, the move to initiate a potential strike was disruptive to its passengers and other employees, with the Irish airline reiterating that the Labour Court issued interim recommendations that outlined a clear path forward for the two parties. The recommendations were accepted by Aer Lingus, added the representative.
“IALPA have rejected the outcomes of multiple independent processes which have sought to resolve the issue, including a Pilot Pay Tribunal report which recommended a 3 year pay deal similar to that which has been agreed by other employee groups (i.e. an increase in consolidated pay for pilots of 12.25%, and a 1.5% unconsolidated pay increase). During the WRC and Labour Court processes, IALPA sought an effective increase in pay for pilots of 27%.”
Furthermore, Aer Lingus emphasized that its pilots are
“very well paid,”
noting that IALPA’s failure to engage in the various independent processes put investment, growth, and jobs of the airline at risk. The spokesperson concluded that a potential strike would also cause unnecessary disruption to passengers.
Huge Increase: IAG Sees Profits More Than Double To $3.8 Billion With 23% Transatlantic Growth
The group expects strong demand to continue in the medium term.
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