Aer Lingus has unveiled details of its redundancy package to staff this afternoon. The company said it has not ruled compulsory redundancies if the package is not accepted by enough employees.
The voluntary package to all Aer Lingus workers will offer four weeks basic pay per completed year of service up to a maximum of two years pay.
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An early retirement scheme is to be made available to pilots over 48. They will receive ex-gratia payments of £50,000 subject to 20 years of completed service.
The company said that it hoped to return to profitability in 2003. The overall cost reduction required is £148 million per year.
The Taoiseach Mr Ahern will meet union leaders later today for crisis talks on the future of Aer Lingus.
Union officials said they would put detailed proposals to Mr Ahern on a possible way out of the current difficulties emphasising that time was running out for the airline.
"We need to resolve this situation in the next couple of weeks if the airline is to continue in existence," said Mr John McDonnell, SIPTU’s general secretary.
Facing losses for the year of around £70 million, Aer Lingus recently outlined a survival plan which included reducing capacity by a quarter, and cutting more than 2,000 jobs from its workforce of 6,300.
The Government last week said it was seeking a buyer for up to 35 per cent of the company.
However, Mr McDonnell said private investment was unlikely while the issue of redundancy payments remained unresolved, and Aer Lingus had indicated it could not afford to set aside more than £40 million, yielding between just £15,000 and £20,000 per employee, many of them long-serving.
"US airlines have received aid which has placed Aer Lingus at a competitive disadvantage, given its reliance on the US market," he said, adding the airline was strategically important for Ireland given its island status.
IMPACT spokesman, Mr Bernard Harbor, said a commitment to Aer Lingus's survival would be sought from the Government.
"We also need positive signals on investment, whether it be private or public," he said.
He added that Aer Lingus's difficulties were short term and that it could return to profitability.
The board of Aer Lingus is scheduled to meet tomorrow.