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Aer Lingus leader Foley faces harassment charge

February 16, 2011

By Staff Reporter

By Stephen McKinley

Aer Lingus is facing a high-altitude crisis after chief executive Michael Foley was suspended on charges of sexual harassment.

After the board suspended him at the weekend, it is believed that Foley is in discussion with legal advisors, and he stayed away from work on Monday.

Two charges of sexual harassment were made against Foley, the first by Joan Loughnane, a director, in February. The second was made in March by a staff member at Aer Lingus’ head office at Dublin Airport.

In accordance with company policy, a report was made by a subcommittee of the board of directors to examine the validity of the charges and then propose action. The subcommittee’s members were Dr. John Keane and Rose Hynes. According to an Aer Lingus statement, its findings were "not favorable" to Foley.

A separate subcommittee is now studying the report and told Foley that he was not required to attend work — in effect, a suspension — while the report was being studied.

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After the subcommittee has delivered its verdict, Foley will have 48 hours to reply to the committee. It is possible under Irish law at this point for Foley to take out an injunction against the committee and the board, because the original report was conducted internally, without an independent referee.

In other, similar cases, an interim injunction was used to stall the process — such as when former National Irish Bank chief executive Jim Lacey faced removal from the bank’s board. So far, there has been no sign of Foley taking this path.

While this investigation continues, Aer Lingus executives will report to board chairman Bernie Cahill until the issue is resolved. Cahill is also keeping Minister for Public Enterprise Mary O’Rourke informed of developments.

State-owned Aer Lingus, heading toward privitization, has been rocked by a series of crises in recent months, not least being sustained industrial action that has caused numerous flight cancellations. Foot-and-mouth disease hit the airline badly, as it did other areas of Ireland’s tourist industry.

Foley, a high-profile executive who was formerly CEO with Heineken in White Plains, N.Y., moved to Aer Lingus in July 2000.

Aer Lingus company policy defines sexual harassment as "unwanted conduct based on a person’s gender, which is offensive to the recipient and which might threaten a person’s job security, or create an intimidating working environment."

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