Lufthansa Set to Get Aer Lingus Work Contract

Thu Feb 21, 2008 11:05pm GMT
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DUBLIN (Reuters) - A unit of Lufthansa (LHAG.DE: Quote, Profile, Research) is among a number of suppliers named by Aer Lingus (AERL.I: Quote, Profile, Research) on Thursday as set to get maintenance contracts with the Irish airline as part of a cost-cutting drive.

Aer Lingus (AERL.L: Quote, Profile, Research) said it had entered into exclusive final contract negotiations with the companies after issuing a tender to provide aircraft maintenance services.

The former state airline previously had a 10-year maintenance contract with SR Technics's Irish subsidiary which is due to expire in October.

"We are pleased to confirm that the process has yielded significant and necessary cost savings for Aer Lingus over a 10-year period," Aer Lingus Chief Executive Dermot Mannion said in a statement.

The carrier has tried to press ahead with cost-cutting plans since its privatisation in 2006.

Aer Lingus said it was in talks with SR Technics to provide line activities, while Sabena Technics and TAT Group were expected to provide base maintenance.

Lufthansa Technik and Honeywell International (HON.N: Quote, Profile, Research) are set to provide components maintenance services.

Goodrich Corporation (GR.N: Quote, Profile, Research) is in talks for wheels and brakes maintenance and Honeywell International also for the provision of materials, Aer Lingus said.

The airline needs to make cuts to help it fend off aggressive competition from Europe's biggest budget airline Ryanair (RYA.I: Quote, Profile, Research) (RYA.L: Quote, Profile, Research), which has a stake of over 29.4 percent in Aer Lingus.  Continued...

 
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