Published on Thursday, November 3, 2011
Ryanair has accused Aer Lingus of a "cover up" over a flawed redundancy scheme that landed the airline with a â‚¬30 million bill.
Chief executive Michael Oâ€™Leary has demanded an extraordinary general meeting at Aer Lingus to investigate who authorised the special payment to the Irish Revenue Commissioners.
According to the Irish Times, Ryanair is calling for the publication of an independent â€œDeloitte/McCann Fitzgerald reportâ€ into a â€œleave and rehire schemeâ€.
Under the scheme, the airline made 913 staff redundant and then rehired 715 of them on less generous terms.
When the scheme fell foul of Irish Revenue, Aer Lingus was forced to pay a â‚¬30 million bill, which Oâ€™Leary claims cost 90% of the airline's profit.
Ryanair's call came as Aer Lingus reported operating profits of â‚¬94.6m for the third quarter of 2011, 19.4% up on the same time last year.
In an interim management statement, the airline said the rise was due to a strong summer, with revenues for the three months from July to September up by 5.9% to â‚¬435.8m.
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The recent insolvency of Low Cost Travel Group, one of the large players in the travel industry had a big impact on the travelers, hotels and all related players from both wholesale & retail arms. There were about 27,000 people on a holiday who had booked through the company comprised of a €200 million wholesale arm and €500 million OTA / retail arm.