Aer Lingus CEO Resigns, Search For Successor On

The chief executive of Aer Lingus resigned on Monday saying a new face would bring fresh ideas to the loss-making Irish airline.

Dermot Mannion's resignation comes a month after the group reported a net loss of EUR108 million euros (USD$144 million) for 2008 and said it was unlikely to meet expectations for a pre-tax profit this year.

"My decision to step down will allow a new CEO to bring fresh thinking and new ideas to the business," Mannion said in a statement.

Chairman Colm Barrington will assume executive responsibility until a new chief executive has been appointed.

"On behalf of the board and management team, I would like to thank Dermot for his significant contribution to the group over the past four years," Barrington said.

When Mannion took over in August 2005 from Dubai-based airline Emirates, he was hailed as the man to steer Aer Lingus towards a brighter future.

He oversaw the development of new long-haul routes and was at the helm when the airline was privatized and floated on the Irish stock market in 2006.

But Aer Lingus has been badly hit by a deepening recession in Ireland and stiff competition from rival Ryanair, which launched two unsuccessful takeover bids for the group during Mannion's tenure.

Mannion faced a storm of controversy earlier this year when it was revealed his contract had been changed to ensure him a payment of up to EU2.8 million euros (USD$3.74 million) if Aer Lingus was taken over.

The change was later scrapped.