Aer Lingus CEO resigns

By Andrew Bushe

DUBLIN — As Aer Lingus gears up for public flotation to raise funds to replace its aging fleet, the flagship carrier has been rocked by the unexpected resignation of its chief executive, Garry Cullen.

Cullen, who’s 55 and has been with the company for 35 years, had only taken over the top job in October 1998.

He said he was leaving the £100,000-plus-per-year position for personal reasons, saying he did not want to remain in the job during the flotation and its aftermath.

Cullen took over from Gary McGann, who also left the airline unexpectedly, in his case to join the Smurfit group.

Enterprise Minister Mary O’Rourke said she was "totally surprised" and had only learned about Cullen’s departure hours before it was announced when she was phoned by chairman Bernie Cahill.

O’Rourke said she hoped the flotation would take place at the end of this year or early next year.

"He [Cullen] has obviously decided he doesn’t want to be around for that period and he said to the chairman that he was giving plenty of time by resigning now," O’Rourke said.

The minister said the loss of Cullen would not undermine the company. She is expected to appoint advisers for the public offering starting this Sunday, Feb. 13.

Cullen played a central role in turning around the fortunes of the airline and selling off the troubled TEAM maintenance subsidiary. In his tenure, Aer Lingus linked up with the OneWorld global alliance that includes British Airways and American Airlines.

The flotation plan is expected to include the government’s entire 95 percent share. The staff already owns 5 percent and the trade unions are negotiating an Employee Share Option Plan.

The ESOP when Eircom was floated last year gave staff 14.9 percent. The deal gave workers about £100,000 each in shares.

The minister has dismissed suggestions from some airline unions that its ESOP should bring their ownership level up to about 20 percent.