Aer Lingus has reduced its staff fares by up to 50 per cent, but it denies the move is an attempt to reward its 4,200 employees for co-operating with its survival plan.

Staff can avail of low fares to the US, Britain and continental Europe, although they have to go on stand-by.

A spokesman said the reduction for staff was in line with the company's general policy of dropping fares.

Staff rates are reviewed from time to time, said the spokesman, and the latest reductions reflected the fact that Aer Lingus was now a low fares airline.

He denied that staff would be filling empty seats, particularly to the US. He said in most cases flights were full to the US and staff had difficulty getting seats.

Flights to the UK and Europe will now cost staff between € 13 and € 18, plus tax and charges of €20. Flights to the east cost of the US will cost € 29, plus € 50 in taxes and charges. Flights to Los Angeles will cost € 41, plus € 50 in taxes and charges.

Because of the fall in the airline's ordinary ticket prices, staff are increasingly prepared to pay for those rather than pay a staff rate and go on standby. As is traditional in the company, workers with the longest service get priority for stand-by tickets.

On Friday the airline's chief executive, Mr Willie Walsh, outlined a major promotional programme to be launched in the United States shortly to stimulate tourist travel to Ireland this summer.

Mr Walsh said: "In Aer Lingus we have not stood idly by as the crisis in Iraq developed. In the United States, for example, we have initiated a campaign to harness the entire industry in a major promotion to stimulate travel entitled Aer Lingus 1,000 Welcomes Programme."

This campaign would show the American consumer that Ireland was a friendly, welcoming destination with many attractive special offers to travellers this spring and summer, he said.

"The goal is to have this programme ready by early April and to launch it at the appropriate time depending on events in the Gulf," he said.

He was speaking at the annual meeting of the Dublin City Centre Business Association.