Aer Lingus: Staff in Aer Lingus will have to make a contribution help address the airline's multimillion-euro pension deficit, Minister for Finance Brian Cowen said yesterday.
Speaking at the Irish Management Institute conference, he said that such a contribution would be "part of the solution" to the pension shortfall, which is one of the biggest issues facing the airline ahead of its privatisation.
"Where you have a deficit in a pension fund, the way you close the gap is by contributions being made by the stakeholders concerned. Obviously, that will involve finalising arrangements with the employer and the employees on those issues," he said.
"These are all details that will clearly be dealt with by management and the people who have to make sure that we have a successful IPO."
Mr Cowen insisted that the Government will retain at least 25.1 per cent of the airline as a "long-term investment" after its initial public offering later this year.
However, he would not be drawn on whether the Government would buy additional shares in any future offering to avoid the dilution of its stake below 25.1 per cent.
On the ownership of the airline's valuable landing slots at Heathrow Airport, Mr Cowen said the Government will make its position clear in any discussion with the other shareholders after privatisation that the slots should not be sold.
