D Wednesday, January 27, 2010 Business 1917 business@metroherald.ie Business & Finance DOWNDOWN v$v$ DOWNDOWN vv ISEQISEQ by 50 at 3,016.53 $1.41 0.87 By Andras Gergely Aer Linguss new ticket prices in a move to no-frills Business Bites RATINGS agency Standard and Poors has downgraded the Irish banking system for the third time in a year. S&P moved the countrys banks from its third-ranked group to its fourth, citing rising risk and a challenging 2010. The downgrade will make it harder and more expensive for Irelands cash-strapped banks to borrow on global markets to lend. We expect that a difficult economic environment for an extended period, in the context of the relatively high leverage in the Irish economy and rising industry risk, will exert significant pressure on Irish banks asset quality and earnings, the global ratings agency said. The move puts Ireland, which fell out of the highest rated group in December 2008, in the same category as countries such as Korea, the Czech Republic and Slovakia. S&P reduced its rating of AIB to A-, with a negative outlook, saying the amount and timing of the Governments bail-out plans may not be enough to even support this. Bank of Ireland had its rating reduced to A- also, but with a stable outlook, while Ulster Bank was downgraded to an A rating. Bank ratings downgraded Classic model: Rosanna Davidson helps launch the Society of the Irish Motor Industrys used car website beep beep.ie the only used car website where every car advertised is sold by a SIMI dealer, has been put through a full history check and has warranty information Picture: Sharppix LOSS-MAKING Aer Lingus yes- terday took a step closer to the no- frills model of rival Ryanair with the extension of extra charging to boost revenue. The former State airline drew a muted response from investors with its offer of basic ticketing plus top- up fees for meals, access to lounges and seat selection as it tries to revive passenger numbers in its battered home market. But Aer Lingus chief executive Christopher Mueller said a pure low-cost model was not sustaina- ble. To enhance revenue, Aer Lingus, which was down 400million in gross cash last year, said it would unbundle paid product options for passengers, offering low fares for the majority with additional premi- um enhancements on demand. Meanwhile, Aer Lingus and Aer Arann have agreed a franchise ar- rangement on routes from Dublin and Cork. The new routes will be branded as Aer Lingus Regional services, and will be sold through the Aer Lingus website but will be operated by Aer Arann. MORE than 600 ghost estates around the country have been mapped by academics. The analysis by the National Institute of Regional and Spatial Analysis, which last week said more than 300,000 houses lie empty, suggests partially-built and semi-vacant housing in rural counties could take up to ten years to sell off. Cork and Dublin, which have 96 and 58 of the estates respectively, can absorb the surplus sooner. COMPUTER giant Hewlett Packard (HP) is liable to British Sky Broadcasting for fraudulent misrepresentation, a court has ruled. Sky was originally looking for 709million (809m) in damages from HP after the data providers woeful performance fulfilling a 48m (54.8m) contract to build Sky a new customer services system. A further hearing for damages is to take place next month. BRITAIN came out of recession in the fourth quarter of 2009, but with a weaker growth rate than expected. GDP rose 0.1 per cent between October and December, below 0.4 per cent growth forecasts. Output was 3.2 per cent lower than a year ago and overall GDP fell by a 4.8 per cent in 2009. Bank of England policy makers will study the data as they assess the strength of the recovery and whether to halt emergency stimulus measures. 450 jobs to go in 40m costs plan UP TO 450 airport workers were facing redundancy last night after union members agreed to a breakthrough 40million cost-cutting plan. A deal brokered with trouble- shooters at the Labour Relations Commission will see a pay cut of between 4.25 per cent and 12 per cent for staff but the money saved will be held in a special fund. Siptu officials, who drew up the initiative, said the money will be paid back to workers at the three main airports at a later date if the Dublin Airport Authority hits targets. Dermot OLoughlin, union organiser, said: We believe these proposals have the potential to provide sustainable quality jobs. index.html2.html3.html4.html5.html6.html7.html8.html9.html10.html11.html12.html13.html14.html15.html16.html17.html18.html19.html20.html21.html22.html23.html