Industrial Relations Conflict and Collaboration:: Adapting to a Low Fares Business Model in Aer Lingus

Joseph Wallace, Siobhan Tiernan and Lorraine White

European Management Journal, 2006, vol. 24, issue 5, 338-347

Abstract: This article traces the history of the Irish state airline Aer Lingus and the decision to move towards a low cost business model in response to the new realities in the airline industry. This has seen the airline retain "some frills" rather than embrace a total "no frills" model as represented by Ryanair. This change in the business model has been accompanied by a series of negotiated agreements between trade unions and management. These agreements have many of the features of employment pacts, rather than the pure concession bargaining associated with some airline restructuring in the USA. Privatisation is now on the agenda and this has led to strong trade union resistance. The future of the airline in the medium term is likely to depend on a further successful pact between unions and the company.

Date: 2006
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