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The boss of Aer Lingus today admitted the full-service, long-haul airline business model operated by the likes of it and British Airways is bust.
The Irish carrier announced huge cost-cutting plans today. It said that from next autumn it would axe flagship routes to Washington, San Francisco and Chicago - as well as putting some flights to New York under review - and cut staff, threatening hundreds of jobs.
In total the airline is to cut capacity on its US long-haul services by 25%.
Aer Lingus chairman, Colm Barrington said: "These changes to our schedule are absolutely necessary given the unprecedented operating environment and legacy practices in our long haul business which are no longer sustainable."
In a statement, the carrier which is 25% owned by the Irish government and 29% by Ryanair after two abortive takeover attempts, said: "This reflects the rapidly deteriorating economic and operating environment for the airline industry as a whole.
"Aer Lingus' yields [money made per passenger] have been declining in exceptionally poor market conditions.
"Most notably, long-haul average fares fell by 19% in the first quarter of 2009 reflecting weak economic conditions and consumer confidence on both sides of the Atlantic."
Aer Lingus is also cutting its number of short-haul planes based at Dublin by 8% and at Belfast five major European routes have been axed.
