The 1,500 staff of FLS Aerospace in Dublin, formerly Team Aer Lingus, are expected to be told today their company has been acquired by a new owner.

A spokeswoman said a business update would be provided to staff at various FLS Aerospace locations, but she declined to discuss the matter further. There has been constant speculation in the aviation industry in recent months about a takeover of FLS Aerospace, with Swiss firm SR Technics the most likely purchaser.

FLS Aerospace has major operations in Dublin, Manchester and Stansted. Due to the slump in the airline business, its profits have been eroded in recent times, with the Irish operation producing a pre-tax loss of €1.3 million in 2002.

FLS entered the Republic in December 1998 following its takeover of Team Aer Lingus. Since then it has built up a considerable client list, with Aer Lingus, EasyJet and Ryanair among its customers.

Despite this, the Irish facility, like the others, has struggled to maintain profitability. Last year the company's parent, FLS Industries, indicated it was anxious to exit from air maintenance work. It sold off a small air maintenance operation in Copenhagen in early 2003.

In its interim results released in August, FLS added to speculation that it was poised to sell the aerospace wing to SR Technics.

The company said: "In future, FLS Aerospace will no longer be a core business area within FLS industries. A process is currently ongoing where the future ownership... is being reviewed."

In November, staff at FLS Aerospace Dublin instigated an unofficial overtime ban in response to the company's refusal to implement the latest rise under the national pay agreement.

The company pleaded inability to pay the 3 per cent due last month under the first stage of Sustaining Progress.

It offered to enter into "meaningful negotiations" with unions on the issue. Staff were reported to be angry that the company was refusing to sanction the pay increase at its Dublin operations while paying a similar increase at its British units.

A spokeswoman for the company said the Irish and British operations were totally separate and pointed out that the British workforce had conceded on productivity issues in return for the pay rise. "We are not making a profit in Dublin," she said. "The environment in the aircraft maintenance sector is highly competitive and we are facing challenges from elsewhere."

SR Technics is the result of a management buyout (MBO) in 2002, although much of the finance for the MBO was provided by UK venture capital house 3i.