05 April 2009

EI Loses Another CEO

Aer Lingus, one of the poster children of the Hybrid Value Carriers has lost its CEO, former Emirates executive, Dermot Mannion.

A formal announcement will be made this morning to the Irish stock exchange where EI's shares are traded.

Michael O'leary must be rubbing his hands with glee. And perhaps not just a little bit of relief. Twice his Euro 1.40 offer has been rejected. On Friday EI's shares closed at less than half that value 67 cents.

A short three years plus of Mannion's reign has come to an abrupt end. With a projected loss of near 120 million euros forecast for 2009 - nearly double Mannion's original estimate of 55 millions, things are starting to look pretty dire for the former Irish Flag Carrier.

The global economic gloom is being especially hard on marginal airlines such as EI. Surprisingly the two characteristic carriers of the Legacy Carrier moving down Air Canada and Aer Lingus have both lost their leaders in the space of a few weeks.

while the timing may be coincidental the pressures on the executive suite at any airline is getting pretty intense.

Thanks to Professor Stuart for this one.


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