DUBLIN (AFP) - A range of options for the future financing and ownership of Irish state airline Aer Lingus are being examined by the government, Prime Minister Bertie Ahern told parliament.
He was answering questions from opposition Labour Party leader Pat Rabbitte about the resignations submitted on Tuesday by the airline's top three executives, including chief executive Willie Walsh.
Rabbitte claimed the loss of the trio meant the value of the company was "shot to shreds".
A government sub-committee is examining the future ownership and funding of the airline and Ahern said a report from investment bankers Goldman Sachs had been received a month ago.
Ahern said the report examines whether the state should put investment into the airline and had given about 10 options. It looked at various forms of equity injections and other models.
"It is for the government to go through those and make a decision."
Aer Lingus is 85 percent owned by the government with 15 percent held by the staff.
Ahern said the airline was expected to make 100 million euros (130.2 million dollars) profit this year.
He paid tribute to the three departing executives for their work in turning around the airline from when its survival was threatened following the passenger downturn in the wake of the September 11, 2001 attacks on the United States.
"Aer Lingus is a success story, thanks not only to the management but also to the union leadership and the industrial relations machinery which have made a major successful transformation possible by agreement."
Ahern said there was a difficult industrial relations atmosphere in the airline, with the unions objecting to the current business plan that seeks to maximize the competitiveness of Aer Lingus as a low-cost carrier.
The unions are concerned about the impact on working conditions, outsourcing of jobs and Ahern said they regarded the management's negotiating style as "deliberately aggressive".
A new management team would be appointed and the government as shareholder would take the necessary decisions on the airline's future.
The executives' announcement that they plan to leave next May comes as the company is in the process of implementing a plan to make 1,325 staff redundant, bringing the workforce to 2,668 over the next three years.
11/17/2004 - 19:35 GMT - AFP