Aer Lingus faces more resignations

DUBLIN - Further high-level departures at Aer Lingus, the Irish state airline, may follow the resignation of the chief executive, Cathal Mullan, writes Alan Murdoch.

Mr Mullan's position was undermined by the appointment of Bernie Cahill as executive chairman. The Irish prime minister, Albert Reynolds, told the Dail yesterday that the appointment of Mr Cahill, the airline's chairman for the past two years, was merely the first step in restoring profitability to the company, which is soon expected to report losses for 1992 of almost Ir pounds 100m ( pounds 103m).

Moves against management had been predicted amid reports that incoming Labour ministers had been horrified by the state of the Aer Lingus accounts.

Last month the cabinet rejected management proposals including 500 redundancies at a cost of Ir pounds 20m. The airline is seeking Ir pounds 500m in new equity from the state to restore its finances, but ministers have said an amount of up to Ir pounds 300m is more likely.