Irish airline Air Lingus reached an agreement with its union for both a pay freeze, and the elimination of at least 200 jobs. The measures should provide 50 million euros in savings, allowing the airline to dodge a second takeover bid from competitor Ryanair and to improve its 2009 outlook. Air Lingus will also offer short-haul services starting next year. The Irish (and global) recession has made it increasingly difficult for the airline to remain independent, but the union deal will place Air Lingus in a better position competitively next year.
See "Aer Lingus says union deal will boost results", Reuters, December 8, 2008