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

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  • Wallace, Joseph
  • Tiernan, Siobhan
  • White, Lorraine

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.

Suggested Citation

  • Wallace, Joseph & Tiernan, Siobhan & White, Lorraine, 2006. "Industrial Relations Conflict and Collaboration:: Adapting to a Low Fares Business Model in Aer Lingus," European Management Journal, Elsevier, vol. 24(5), pages 338-347, October.
    • Handle: RePEc:eee:eurman:v:24:y:2006:i:5:p:338-347
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    Cited by:

    1. John Francis O’Connell & David Connolly, 2017. "The strategic evolution of Aer Lingus from a full-service airline to a low-cost carrier and finally positioning itself into a value hybrid airline," Tourism Economics, , vol. 23(6), pages 1296-1320, September.
    2. Fasone, Vincenzo & Kofler, Lukas & Scuderi, Raffaele, 2016. "Business performance of airports: Non-aviation revenues and their determinants," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 35-45.
    3. MAHMOOD Athar, 2020. "Employee Stock Option Plans: A Meta-Analysis (Understanding Impact Of Esops Through Literature)," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 15(1), pages 100-114, April.
    4. Yi Zhang & Jihui Ni, 2023. "Construction of Evaluation Index System of Harmonious Labor Relations in Chinese Enterprises: An Empirical Analysis Based on Structural Equation Model," Sustainability, MDPI, vol. 15(20), pages 1-23, October.

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