The board of Aer Lingus has agreed to proceed with a programme to cut costs across the company and said it will proceed with its plans "as a matter of urgency".
In a statement, the board said it had agreed a cost-reduction plan "to deliver the substantial savings which are necessary to ensure the company’s long-term viability as an independent airline".
The board did not outline the expected savings, but it is believed the plan is aimed shaving some €100 million off current costs.
"The board has agreed the need for this fundamental change in the cost base to ensure that the company remains competitive and is appropriately positioned to take advantage of future growth opportunities," the statement said today.
"Given the extremely challenging revenue environment the board is committed to delivering these cost savings as a matter of urgency and management will meet with staff and their representatives next week to discuss the manner in which these cost savings will be achieved."
On Wednesday, representatives from Siptu, the largest trade union within the group, met management under the auspices of the Labour Relations Commission and told the company they will oppose outsourcing of any part of the operation.
Siptu said the company outlined to the union its current and projected economic situation for 2008-2009.
"The company also reiterated its intention to implement significant cost reductions across all of its operations," Siptu said.
"Following the board meeting, meetings will be arranged early next week at which the company will outline the specifics regarding their cost cutting proposals," Siptu said.
It is understood that at meetings, Aer Lingus told Siptu and craft unions that it was still forecasting a substantial loss next year.
Informed sources said that Aer Lingus had indicated that its revenue picture had worsened in recent months.
The union said this evening the Aer Lingus statement "was not unexpected".
"Siptu will be meeting the company on Monday at 3pm, after which it will have a further meeting with shop stewards," a union spokesman said.
Gerry McCormack, Siptu national industrial secretary, said the union will wait to see what the proposals are but the union will not accept mass lay-offs.
“It’s not going to be accepted.” he said.
Additional reporting: PA