Aer Lingus is to begin laying off 600 of its 6,000 permanent staff from the beginning of next month, as the crisis in the airline industry deepens. Aer Lingus, like many other airlines, has been affected by the economic slowdown, sparked partly by the attacks on the US last month.

However, there were some signs of possible rescue for the airline, following moves yesterday by the Belgian and Swiss governments to bail out Sabena and Swissair respectively, both of which have filed for bankruptcy protection. This could clear the way for the Irish Government to provide state aid to the troubled airline.

Aer Lingus has filed a redundancy return to the Department of Enterprise Trade & Employment notifying it of the initial tranche of job cuts required under the 1997 Protection of Employment Act.

The notices cover all categories of staff, including management, pilots and cabin crew. This is being seen as an indication of the company's determination to cut operating costs by 25 per cent and should strengthen the case Aer Lingus unions are making for state aid.

The lay-offs begin on November 7th and will be phased through the winter months. Further returns to the Department are expected and up to 1,700 jobs may go. The chairman of the Aer Lingus group of unions, Mr Eamon Devoy, said last night that he would be seeking an early meeting with the company and the Government over the proposals.

"We have to look at all the options, and there should be no panic decisions, at this early stage." As an island economy, we need a national airline that will not pull the plug whenever it stops making a profit," he said.

An Aer Lingus spokesman said last night that the company had no comment to make. Meanwhile, delegates at the SIPTU conference in Tralee have voted unanimously for the Government to provide "immediate and urgent financial assistance" to the airline. The union, which represents the majority of airline employees, is sending a delegation to Brussels next week to lobby for the Irish Government to be allowed invest in the company.

The senior official involved, Mr Noel Dowling, said Labour MEP Mr Proinsias de Rossa had raised the matter already on their behalf with the European Parliament. The union would be lobbying all Irish MEPs as well as the Transport Commissioner Ms Palacio di Loyala and other senior officials of the Commission.

The European Commission normally forbids state aid for airlines. However, if it decides to open the possibility of state aid then that is something the Minister for Public Enterprise Ms O'Rourke will look at, her spokesman said last night. "We are awaiting the outcome of the Council of Ministers meeting on October 16th, at which the Commission will present a report."

SIPTU vice president Mr Jack O'Connor said after his union's conference debate, "A choice must be made between the compelling arguments for the maintenance of a national airline in an island country, and the ruthless demands of the global market, where the preoccupation with the bottom line disregards economic development, social and regional requirements and dismisses the interests of the workers who built it."

He said the campaign was about more than saving jobs. He also distanced SIPTU from the IMPACT policy. The latter union, which represents pilots and most of the cabin crew, continues to support privatisation with a significant shareholding for employees.

"If it is morally wrong for speculative capitalists to acquire a public asset at bargain basement prices with the intention of making a killing later on, it is equally wrong for trade unionists to seek to do it too, as long as any genuine chance remains of keeping it in the hands of the people," Mr O'Connor said. "The difference in approach by two unions, which normally work in tandem when lobbying the Government on public policy issues, will not help the strategy of either."

During the debate on Aer Lingus, two worker directors, Mr Willie Clarke and Mr Mick Sweeny, spoke. Mr Clarke said the airline already faced a crisis before the tragic events of September 11th in the US, with "corporate vultures circling to pick the bones". Mr Sweeny said the Government had "to stop talking down the national airline".