Aer Lingus staff are angry at yet more cost cutting proposals.

Ireland’s national airline, Aer Lingus, has become the latest airline to announce hundreds of job cuts in a cost cutting exercise, which it hopes will save around €97 million (£90m) by 2011.

In August, it revealed it had suffered from a poor start to 2009 in its half yearly results, reporting a drop in operating profits of €23.4 million (£21m), though it said passenger numbers were up 1.7%. Aer Lingus’ Chairman, Colm Barrington, attributed the poor results to a “challenging environment” and “weak consumer confidence”.

Under the latest set of proposals a combination of reduced flights, new working methods and new IT systems will see 676 jobs cut. Together with 100 staff who have already been informed their contracts will not be renewed, the figure reaches almost 800.

Remaining staff will not be immune to the cost cuts, as high paid staff will see their basic salaries reduced and allowances across the company will fall.

Recently appointed Chief Executive, Christopher Mueller, said: “Our plan to reduce our operating cost base and change work practices will secure Aer Lingus’ future as a viable and strong airline that can prosper in one of the most competitive travel markets in the world.”

The trade union representing Aer Lingus cabin crew and pilots, Impact, said it had received the cost cutting proposals from the airline and would begin consulting its members. A statement on the Impact website said: “The difficulty for our members is that the airline has, over the last eight years, returned to staff repeatedly looking for savings, on the basis that the company is facing ruin.

“Time and again our members have conceded to changes in pay and working conditions in response. As recently as nine months ago, our members delivered savings, valued at €15m, to the company.”

As a shareholder, Ryanair has jumped at the opportunity to attack Aer Lingus on its “free flight entitlement” policy at a time when the airline is in so much debt.  The two airlines are bitter enemies, with Ryanair launching several takeover moves.

Stephen McNamara, Ryanair spokesman, said: “Ryanair like all other Aer Lingus shareholders is concerned to ensure that the Board of Aer Lingus tackles its bloated cost base, and eliminates unnecessary cost and waste such as free flights for non employees such as Mr Fitzpatrick and any other political appointees to the board of Aer Lingus at a time when the airline is losing money and cutting jobs.”