Chief executive Christoph Mueller said an agreement with unions has been reached for a “transformation plan” but pilots and cabin crew met this proposal with resistance. Without having an agreement, he will take whatever measures are necessary to ensure stability of the business, adding that redundancies are very likely.

“We have narrowed the gap with most union groups on the achievement of sustainable savings and this has brought us very close to signature with them. Instead of sustainable savings of a structural nature, only temporary savings over a short few years were offered by IALPA (pilots). Aer Lingus was asked for very high compensation in return,” Mueller stated.

It remains to be seen what are the routes that are unprofitable. The company launched 6 new routes including London – Bucharest last month.

In the third quarter of 2009, Aer Lingus’ profits fell 9.7%, while the number of passengers rose 7% and the load factor increasing on short and long routes. Fares dropped 17.6% in the three months to September 30. This decline had a positive outcome for the company, which noticed an 8.5% increase per passenger on extra fees, such as seat booking or extra luggage.

In an effort to reduce costs, Aer Lingus hired Christoph Mueller as their new CEO and implemented a series of cost-reducing measures to cut €97m off their anual cost. As a result, 676 members of the company’s staff are being let go and pension arrangements are set to be changed after talks with the Union.

“Cost increases in the form of higher fuel prices, airport and navigation charges together with further expected gross domestic declines and unemployment increases in our major markets, will mean that we must continue to reduce any costs within our control so that we can cope with continued falling fares, compete and maintain balance sheet strength. [...] actions taken to remove capacity on underperforming parts of the network has had a positive impact on stabilising load factors and yields while reducing operating costs” said Aer Lingus.

Aer Lingus is in a tight competition with Ryanair to gain passengers, both being affected by rising fuel costs. The first reported €93m losses for the first half of 2009, almost four time than last year.

Ryanair decided to introduce extra flights for fans wanting to see the game, stating that these would be “at least €20 cheaper than Aer Lingus” and that they will be sold out fast. The basic cost for a seat on a Ryanair flight from Dublin to Beauvais increased from €4.99 to €124.99 on November 17th or 18th, one-way, taxes included. The cost for a round-trip around the time of the match can exceed €350.

“All of Ryanair’s flights to Paris were blocked off at fares of €150 one way prior to the draw, which was still cheaper than Aer Lingus’ fare of €165 one way,” said Stephen McNamara, head of communication for Ryanair. “In response to the surge in booking since lunchtime, Ryanair has added extra flights and slashed fares to €125 one way”.

The other option for a flight from Dublin to Paris, Aer Lingus, also significantly increased its prices, the outward leg costing €164.99. Two days later or 3 days before the match, you could get a ticket for as low as €0, without taxes.

Fine Gael’s sport spokesman John O’Mahony condemned these practices and said football fans would “rightfully feel aggrieved by this obvious and unjustifiable rip-off”. He said the prices are “off the wall” and, even though people expected for prices to increase, the actual prices are ridiculous.

An Aer Lingus spokesman said the prices are given by supply and demand: “There is a huge demand for the tickets and we have over 2000 seats on the day to and from Paris.” Aer Lingus also added extra flights on the day of the match to cater to the interest of Irish football fans.

Enda Corneille of Aer Lingus said: “Since our launch in April, we have sold more than 400,000 flights.”

With the opening of these routes, Aer Lingus also debuts a sale for the 6 destinations, with tickets starting from 0EUR, taxes not included. The sale also includes destinations such as Faro, Knock (Ireland West), Malaga, Munich, Vienna and Zurich, flights available from November 4 to March 24, 2010.