Aer Lingus fires Foley

By Stephen McKinley

After an investigation, an Aer Lingus board subcommittee upheld two counts of sexual harassment against Michael Foley last week and fired him. The committee said the accusations had been proved "correct in all material respects."

The committee told Foley that his conduct had been "less than satisfactory." He loses his salary of £250,000 and pension benefits. He must also vacate his South Dublin apartment rented for him by Aer Lingus and return a Mercedes car that has been at his disposal. He loses free flights on Aer Lingus.

The committee reported that Foley’s behavior could not be classified as "gross misconduct." As such, a condition of his departure is that he will be paid salary for the remainder of his two-year contract, which ends in August 2002. It is thought 14 months’ salary would be worth about £290,000 to Foley.

Repeating that he was innocent, Foley said he would consider all his options.

"I am shocked and disturbed by the decision of Aer Lingus," he said. "I reiterate my total innocence of the allegations made against me and will take all necessary steps to clear my good name."

After the events surrounding Foley’s demise at Aer Lingus, it is unikely that a successor will be forthcoming anytime soon. When his predecessor, Garry Cullen, resigned in February 2000, it was six months before Foley was appointed.

The sacking can only further impede plans to float the state-owned enterprise on the open market. Analysts have speculated that a trade sale option may be on the table instead of a flotation.