Aer Lingus fires CEO

June 14, 2001 Posted: 1210 GMT

LONDON (CNN) -- Aer Lingus said Chief Executive Michael Foley has been fired after accusations were made of sexual harassment.

Foley, an Irish citizen, was recruited from the U.S. unit of Dutch brewing group Heineken last September to organise the Irish flag carrier's privatization.

He had previously been suspended on full pay as the airline investigated allegations of harassment from a worker-appointed director, Joan Loughnane, and Anne Lawlor, Foley's personal assistant.

Foley denied the allegations in a statement released to Irish state radio RTE, but he or his representatives couldn't be reached for comment.

"I reiterate my total innocence of the allegations made against me," Foley said in his statement. "And will take all necessary steps to clear my good name."

Foley's statement went on to say that he was hired by Aer Lingus to prepare the company for a new era of competition, deregulation and new challenges, but that those initiatives had been "hijacked."

Since Foley joined the state-owned airline it has suffered industrial disputes that have grounded its aircraft five times in the last six months.

Irish Public Enterprise Minister Mary O'Rourke said earlier this month she was considering selling Aer Lingus to another airline because the climate wasn't right for an initial public offering.

In announcing, the termination of Foley's contract, Aer Lingus said: "The committee of the board, having concluded that Mr Foley's position as chief executive is untenable, has decided to terminate his employment with immediate effect."

Foley has suggested the allegations against him were linked to the restructuring he planned for the airline.

"My initiatives have been hijacked by a small number of people resulting in this vicious, scurrilous but unfounded campaign against me personally," said Foley's statement to RTE.

Earlier this month, a Dublin court refused to grant an injunction to Foley that would have prevented Aer Lingus from beginning disciplinary proceedings against him.

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