PRESS DIGEST - Ireland - June 12

DUBLIN, June 12 (Reuters) - These are some of the leading
stories in Ireland's newspapers on Friday. Reuters has not
verified these stories and cannot vouch for their accuracy:

THE IRISH TIMES

- Aer lingus (AERL.I) plans to cut all flights from Shannon
airport to New York and Chicago from its winter schedule in a
bid to stem its mounting losses.

- The national Asset Management Agency (Nama) will consider
buying loans from foreign-owned banks falling outside the "bad
bank" plan if Irish bank customers have also drawn development
loans from non-guaranteed banks.

IRISH INDEPENDENT

- Fianna Fail and the Greens will sit down in July to hammer
out a new programme for government, but a cabinet shake-up will
not be on the agenda.

- Prison service bosses are to hold crunch talks with union
officials today amid mounting tensions in Mountjoy jail
following a third serious incident there in just three days.

IRISH EXAMINER

- A leading journalist in the North told a court today she
was not prepared to put herself under sentence of death from the
Real IRA by handing information to the police about the
terrorists' murder of two soldiers.

- Ireland has no future in low-cost manufacturing and
cash-strapped companies should focus their business efforts on
exports and trade with new world economies, the head of
Enterprise Ireland has said.

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