Aer Lingus is considering whether to sell or merge its ground handling operations at London's Heathrow Airport, where it employs around 1,000 staff. However, the company denied that there could be substantial job losses.

Aer Lingus has around 30 contracts to handle other airlines, but in recent times it has lost two lucrative contracts with Lufthansa and Finnair, who joined the STAR and One World alliances respectively.

It is expected that at least four new handling companies will get licences to operate at Heathrow from June, putting further pressure on existing business.