AER ARANN chief executive Paul Schütz expects its franchised routes with Aer Lingus will carry 350,000 passengers a year and account for about 40 per cent of the regional airline’s turnover.
Mr Schütz, who became Aer Arann chief executive in January 2009, said the deal would help push the airline’s revenues this year above €100 million from the 2009 level of €88 million.
This would restore Aer Arann’s turnover to its peak of a couple of years ago, before the recession.
Mr Schütz said Aer Arann would make a “small loss” in 2010. He described its deficit in 2009 as “not insignificant” and said this year’s out-turn would represent “quite a turnaround”.
Aer Arann, which is owned by entrepreneur Pádraig Ó Ceidigh, is unlimited and does not publish its financial information.
Mr Schütz said the franchise deal with Aer Lingus would help to “de-risk” Aer Arann’s business.
Aer Lingus Regional will begin flying on March 28th on 12 routes from Dublin and Cork.
Four 72-seat Aer Arann turbo aircraft are being decked out in the Aer Lingus livery for the service.
Aer Arann will operate the flights with its cabin crew wearing Aer Lingus uniforms.
Bookings will be made through Aer Lingus’s website and passengers will be charged for placing baggage in the hold. “It will be an Aer Lingus experience for the customer,” Mr Schütz said.
Aer Arann carried “just shy of” 800,000 passengers last year, down from 1.1 million at its peak. The loss to Ryanair of its subsidised PSO route from Dublin to Kerry reduced passenger numbers by 135,000.
Aer Arann trimmed its overheads by €8 million, making 67 staff redundant.
“We have tried to position Aer Arann with the right cost base to take advantage of the upturn,” Mr Schütz said.
