Protective notice has been served on Virgin Express Ireland's 60 pilots as the Shannon company's deadline looms for a purchase agreement to be completed with a foreign investor.

Mr Martin Hamrogue, the company's chief executive, refused to comment yesterday on a report from a Moscow-based newspaper, Vremya Novostei, that Aeroflot had bought a 59 per cent stake in the firm, except to say that any non-EU company was precluded from buying a majority stake in the airline under EU law.

Early last month, an Aeroflot delegation arrived from Moscow for discussions with the company which has been for sale for the past four months.

"It is very serious business, it is very serious money and the final decision will be made in head office in Moscow," said Mr Victor Kovalenko, manager of Aeroflot, Shannon.

Mr Hamrogue added he was optimistic that a deal could be done with a foreign investor, saying that there would be news on the outcome within 10 days.

"There are negotiations that are well under way towards a conclusion but it is never done until it is done," he said.

The company has a further 140 staff, made up of cabin crew, technical and administrative staff and tele-workers, who would be given two weeks notice if it appears the company will fold later this month. It has scheduled flights to London Gatwick until next Monday and ceased its direct flights to Brussels on January 15th, a route taken on by Ryanair last week.

In January, Aeroflot was named as one of four serious parties interested in buying Virgin Express Ireland, a subsidiary of the Sir Richard Branson-controlled, Brussels-based Virgin Express Holdings. But one airport source was sceptical of a deal being done because of the expense of paying about $10 million (#10.8 million) for the airline plus additional investment costs.

Mr Hamrogue said he was not allowed to comment on the deal.