New alliance coming?

Aer Lingus and Aer Arann are reportedly discussing an alliance that could offer mutual benefits to their route networks and help reduce their cost bases.

The agreement would enable Aer Arann customers to connect onto Aer Lingus fights to the US or Continental Europe, while Aer Lingus would benefit from Aer Arann's feeder services between the UK and Ireland.

In December Aer Arann's Chairman, Padraig O Ceidigh told the press about his strategy to realign the carrier's business model in order to secure its long-term future in the global recession.