In response to the combined effects of recession affecting the UK and US markets, together with the war in the Gulf, Aer Lingus implemented in December 1990 a recovery plan designed to achieve internal savings of £20 million in the current year.
I am advised by Aer Lingus that all of the savings envisaged in the recovery plan have been included in full in the current year's budget and that most, if not all, of the savings will actually be achieved.
Nevertheless, the company inform me that the results for air transportation continue to fall short of budget despite their best efforts. This is substantially due to passenger revenues remaining below planned levels as is the case throughout the industry.
I am assured by Aer Lingus that every avenue to achieve improved revenue and lower costs is being vigorously pursued. It is too early to make definitive predictions as regards the likely outcome for the current year.