Aer Lingus Group: Pensions update

Dublin & London, 3 March 2014: Aer Lingus Group plc (“Aer Lingus”) and Aer Lingus Limited (“the Company”) note the statement issued jointly by the Department of Transport, Tourism and Sport, the Department of Jobs, Enterprise and Innovation, the Irish Business and Employers’ Confederation (“IBEC”) and the Irish Congress of Trade Unions (“ICTU”) proposing the formation of an Expert Panel (the “Expert Panel”) to engage in discussions with relevant stakeholders regarding the Irish Airlines (General Employees) Superannuation Scheme (the “IASS”). The statement describes the purpose of the Expert Panel as the carrying out of an urgent investigation as to how a final resolution of the industrial relations issues relating to the IASS can be secured.

Over the past four years, the Company has engaged in several initiatives, including direct discussions with the parties, a Labour Relations Commission process and a previous IBEC / ICTU initiative. That previous IBEC / ICTU initiative delivered interim and final Labour Court recommendations relating to IASS funding issues, issued in January and May 2013, respectively, (collectively the “Labour Court Recommendations”). The Labour Court Recommendations which issued over a seven month period represent a thorough and exhaustive analysis of the IASS funding issues and potential solutions. The Company believes that the Labour Court Recommendations remain the only basis upon which a fair and balanced outcome can be achieved and it is willing to engage with the Expert Panel to facilitate their full and speedy implementation. To that end, the Company will engage constructively with the Expert Panel on a voluntary and non-binding basis and will seek to meet the Co-Chairmen of the Expert Panel to discuss the exact basis and process of participation. The Company encourages all other parties to engage with the Expert Panel with a view to the full implementation of the Labour Court Recommendations.

The service of notice of industrial action to take place on 14 March 2014, has already caused significant commercial damage to Company and has inconvenienced and distressed customers. The Company will commence the process of re-accommodating and rebooking customers from tomorrow (4 March 2014), in order to give certainty to customers regarding their travel arrangements in the face of threatened industrial action.