Aer Lingus management are expected to meet unions at the airline next week for a full discussion on the implications of recently announced restructuring plan.

The airline's management is expected to tell the unions that cost reductions are urgent, particularly in the light of current industry trends such as escalating fuel prices.

With yields in the airline business under significant pressure, managment believes Aer Lingus needs to starting cut costs either in late 2004 or by early 2005.

A meeting of the Central Representative Council (CRC), the airline's staff-management consultative forum, took place at Dublin airport yesterday.

A management team is understood to have told staff that while profits are on target, cost reductions are still necessary.

The CRC is a confidential forum where information and views are exchanged.

A conventional industrial relations meeting is scheduled to take place next Monday when senior trade unionists will take part.

The unions still steadfastly oppose the plan, but privately many of them are waiting to see how generous the airline's redundancy package will be.

Unions have also denied they are currently seeking 25 per cent of the airline's equity.

"We don't even know how the airline is going to achieve these numbers, never mind what we might like in return down the line," said one source last night.

Before there is any talk of a larger stake in the company, unions will attempt to get their hands on 14.9 per cent of the airline, promised as part of the last restructuring agreement.

The airline's managment claims all the change promised by staff has not been delivered as of yet.