The High Court judge hearing an action brought against Ryanair by one of its senior pilots has suggested both sides examine the possibility of settling their dispute outside the court.

Mr Justice Budd suggested at the end of Capt John Goss's direct evidence yesterday that there was "a small opening for people to steady themselves and take a look at their long-term best interests" before cross-examination of the pilot begins next Tuesday.

He said that if it was going to be left to him to decide the dispute, it could have a serious effect on people's lives and their business. That would apply to both sides, he said.

If there was any basis for discussions which might lead to an outcome benefiting both sides, he urged they take such an opportunity because "airlines need pilots and pilots need airlines".

Capt Goss, of Malahide, Co Dublin, claims Ryanair made serious and unfounded allegations against him in a letter of December 10th, 2004 to the effect that he intimidated other pilots at Stansted airport, warning them not to accept positions on the company's new aircraft, the Boeing 737-800, based in Dublin.

He claimed the company alleged he failed to co-operate and then initiated disciplinary proceedings against him. He also alleged the company, without notice, suspended him from duty and that he was reinstated following other High Court proceedings.

The company denies the captain's claims.

Capt Goss, in evidence yesterday on the fourth day of the hearing, said that at a meeting on December 23th, 2004, an issue about the Ryanair European Pilots Association (REPA) web site was introduced by the management representatives.

He declined to view documents produced by the company as he believed the subject of REPA was outside the remit of the meeting. He believed the meeting was held to discuss telephone calls he was supposed to have made to intimidate pilots at Stansted.

David O'Brien, the director of flight and ground operations, asked if persons had telephoned Capt Goss and he had replied he did not make any phone call or intimidate anybody.

Capt Goss said that, during the summer of 2001, he attended a company investigation, at which Ryanair chief executive Michael O'Leary was present. It concerned a colleague, Capt Martin Duffy, who was later dismissed. The investigation followed an allegation that Capt Duffy refused to travel on a "jump seat" on a flight from Dublin to Stansted.

Capt Duffy had been elected chairman of the Ryanair pilots' group in early 2001.

Capt Goss said there had been a number of similarities in the situations which arose in relation to Capt Duffy and himself. They both had been invited to company investigations and, in both cases, no evidence was preferred by the company.

He was shocked by a letter he received from Mr O'Brien on December 10th, 2004, alleging intimidation of pilots at Stansted, and he consulted lawyers.

He attended a meeting with management on January 10th, 2005, following receipt of a letter which stated it was felt he had not been "fully open" at a December 23th meeting. The letter stated that, should he refuse to answer reasonable questions, this could lead to disciplinary proceedings for non-co-operation.

Capt Goss said he advised that he had received four telephone calls from one pilot, Capt Gale, the first in mid-to-late November 2004, when Capt Gale said he had received an offer of a position in Dublin operating the Boeing 737-800. He told Capt Gale he could not advise on whether to accept or reject the offer. Capt Gale phoned at a later date to say he had accepted the offer.

Capt Goss said the company was suggesting intimidation was being conducted on an organised basis. He told them on a number of occasions he had no knowledge of, and would not be involved in, any intimidation.

A letter was written to him on January 28th, 2005, but he did not receive it until February 13th/14th because he was out of the country on leave. The company would have been aware of this.

His solicitor contacted him on February 7th and advised him of the existence of the letter. It stated that the company had reviewed the contents of preliminary investigation meetings and, based on Capt Goss's response, had decided this matter required a disciplinary meeting.

Capt Goss said he had no idea from that letter what charges were being levied against him. This was the first information he had received since the January 10th meeting. He had considered the matter as having been dealt with.

The hearing was adjourned to next Tuesday.