Abstract
This analysis has been made to show the various key points that define Aer Lingus as an organisation, which results in choosing the most adapted strategy when they are in a difficult phase.
The airline industry is currently facing the consequences of the global economic crisis, i.e. higher price of fuel, growth in the air market and high instability in international currencies.
Concerning low-costs carriers, the situation is even harder, as these companies must try and maintain the lowest prices possible, regardless of the economic, political or social environment.
Aer Lingus' board has recently adopted NCB Research Analysis proposal that will enable the company to save €74m per year by outsourcing one quarter of the workforce by permitting cutbacks in running costs; which will be relevant to underline the uncertainty of the board and in making the decision. It is vital to understand that Aer Lingus falls under the agency theory and thus everyone's desires and objectives may not be compatible with the company's best interest.
In this difficult period, it appears Aer Lingus is motivated by financial achievements and we must keep in mind that financial plans are meant to help momentarily, while marketing and organisational strategies are the ones that bring durable changes and hopefully profits.
