IAG May Cancel Aer Lingus’s A321XLR Plans Without Pilot Pay Deal
In a recent development, Luis Gallego, CEO of International Airlines Group (IAG), has issued a stark warning that the conglomerate could scrap plans to allocate its new A321-200NY(XLR) aircraft to Aer Lingus if a wage agreement with its pilots fails to materialize. This standoff underscores the growing tensions between the airline and its pilots over pay scales, with potential repercussions on the carrier’s operational expansion and fleet modernization efforts.
Aer Lingus, headquartered at Dublin International, is poised to be the inaugural operator of the A321XLR, a highly anticipated addition to the aviation market, with its debut scheduled for the third quarter of 2024. The aircraft, bearing the registration msn 11348 and to be christened EI-XLR upon delivery, was recently showcased in Aer Lingus’s distinctive branding. This unveiling has heightened interest in the aircraft’s operational deployment within IAG’s network.
The fleet acquisition strategy of IAG includes an order of fourteen A321neo(XLR)s, with a division of six aircraft earmarked for Aer Lingus and the remaining eight allocated to Iberia, the group’s Spanish airline. This strategic distribution underscores the critical role these aircraft play in bolstering the operational capacities of IAG’s airline subsidiaries, which also include British Airways, LEVEL, and Vueling Airlines.
However, the implementation of this plan hinges significantly on resolving a current pay dispute between Aer Lingus and the Irish Airline Pilots’ Association (IALPA). The discord centers around a demand by pilots for a 20% salary increase, a proposal that IAG finds excessively ambitious. Gallego’s comments to the Irish Independent newspaper highlight the chasm that exists between the negotiating parties, casting doubt on IAG’s commitment to investing in Aer Lingus amidst unresolved financial disagreements.
In contrast to the impasse with Aer Lingus, Emerald Airlines, another IAG affiliate operating out of Dublin International, has reached a successful wage negotiation with IALPA. The agreement entails a 10% salary hike to be implemented in phased increments over the next three years, showcasing a potential path to resolution that Aer Lingus and its pilots might consider emulating to avert the looming threat to their XLR acquisition plans.
As this situation unfolds, the aviation community is keenly watching for any developments. IAG, Aer Lingus, and IALPA have yet to publicly comment further on the negotiations. The outcome of this dispute will undoubtedly have significant implications for Aer Lingus’s future operational strategies and its role within the broader IAG framework.