LONDON- Aer Lingus (EI) revives plans to introduce the Airbus A321XLR after reaching a new labor deal with its pilots in July. This development follows parent company IAG’s decision in May to withdraw Aer Lingus as the launch operator for the aircraft.
IAG’s earlier decision stemmed from concerns over cost structures at Aer Lingus. The move also stripped the Irish carrier of its status as the A321XLR’s launch operator.
Aer Lingus Eyes A321XLR
Iberia (IB), another IAG-owned airline, replaced Aer Lingus as the launch customer. The Spanish carrier plans to deploy the long-range narrowbody on North American routes, including Boston (BOS) and Washington DC (IAD), later this year.
Aer Lingus CEO Lynne Embleton announces plans to revisit the A321XLR acquisition with IAG management. This follows a new pilot agreement that addresses previous concerns about cost structures.
The pilot deal includes a 17.75% pay rise and introduces structural changes beneficial for company expansion. A new narrowbody pay scale now exists, potentially enabling A321XLR operations across the Atlantic.
The agreement brings two key structural changes. First, a new pay scale cap applies to all narrowbody flying, improving productivity for European and transatlantic pilots.
Second, the deal removes a “crew agreement” that reduced summer productivity by about 7%. This change allows for more efficient crew utilization year-round.
Embleton emphasizes that these changes will lead to better unit costs for Aer Lingus in the future. The four-year duration of the pilot agreement, longer than the usual three years, provides increased business certainty.
IAG Group Cheif Remarks
IAG is considering options for A321XLR orders following Aer Lingus’s renewed interest. The group holds 14 orders for the long-range narrowbody aircraft.
IAG’s Chief Financial Officer Nicholas Cadbury confirms ongoing deliberations about A321XLR allocation within the group. This statement suggests potential changes in the aircraft’s deployment across IAG airlines.
Aer Lingus faced financial setbacks due to recent pilot strikes. The industrial action cost the airline €55 million, impacting both second and third-quarter finances.
The Irish carrier’s first-half profit decreased significantly, falling to €9 million from €40 million the previous year. This decline highlights the financial challenges Aer Lingus faces.
Airbus achieved a milestone with European certification for the A321XLR just before the Farnborough Air Show. This certification marks a crucial step towards the aircraft’s commercial service entry.
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