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| SR Technics, Dublin Airport
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More than 1,100 jobs are due to be lost at aircraft maintenance firm SR Technics (SRT), which today announced it is closing its operations at Dublin Airport.
Workers at the former Team Aer Lingus facility were advised by management of the decision this morning after talks on Wednesday between the Group Chief Executive Bernd Kessler and Tánaiste Mary Coughlan on the company's future.
SRT said all staff currently employed in Dublin, other than cases where there was potential for transfer, would be made redundant.
In a statement, the company said the loss of major contracts, the current economic forecast, as well as the high cost-base of the Dublin operation had lead to the decision to close down.
It said it recognised the "difficult" economic situation in Ireland but said all of these factors meant it could not make the business sustainable in the medium term. It will now enter into discussions with trade unions, the aviation authorities and other parties, it said.
"SR Technics has been carrying out an in-depth review and assessment of all lines of business across the entire Group, including an evaluation of their financial, operational and strategic impact. As a result of this review, the group intends to close its operation at Dublin Airport.
"Against the backdrop of adverse market conditions for the aviation industry and the global economic downturn SR Technics is restructuring its business to secure the group's long-term future and to deliver the necessary efficiencies and improved productivity throughout the group," the statement said.
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The Zurich-headquartered firm said the recent loss of major contracts from primary load customers in Dublin, the current business and economic forecasts as well as the high cost base of the operation means it will not be possible to fill the resulting capacity gaps with sustainable business in the medium-term.
The intention to close the facility at Dublin Airport will have no impact on SR Technics’ other operations throughout the Group, including its facility in Cork, the company said.
Last February, SRT lost three of its four maintenance contracts with Aer Lingus, its largest customer. All four contracts were understood to be worth some €65 million. SRT had to change work practices following the loss of the Aer Lingus contracts in order to save an estimated €5 million.
Bernd Kessler, CEO SRT said: “We are announcing this deeply regrettable and difficult step only after an exhaustive evaluation of all strategic options for our Group wide operations. We are fully aware of the difficult economic and labour market situation in Ireland and the personal implications of a closure for our staff in Dublin. My management team will be working closely with the relevant unions over the coming weeks and we will ensure that our Dublin employees are fully informed and supported as this process develops. We will do all we can to minimise the impact of this announcement on the workforce.”
The Tánaiste said:“I know that the workers of SR Technics may have been aware of the serious difficulties being faced by the company following the loss of major contracts, however today’s announcement will come as a severe blow to the workers and their families”
“Yesterday I met with representatives of the company who outlined their difficulties and their attempts to explore all options for its Dublin operations including the sale to another party. Unfortunately, it was not possible to proceed with any of these options.
“The company have confirmed that their operation in Cork, which employs nearly 200, will be unaffected by this announcement. They have also indicated that they their Line Maintenance contract with Aer Lingus will continue and other smaller operations will be assigned to another operator.
The company also hope to assist their existing apprentices”.
“I have asked the State Agencies to ensure that everything possible is done to assist those workers affected by this announcement,” Coughlan concluded.
