Pilots at Aer Lingus started receiving redundancy notices today as talks between management and unions stalled.
Under a survival plan for the airline 156 pilot posts needed to be cut, but so far only around 70 have left the company.
The trade union Impact claimed the redundancy package being offered to pilots with long service was worse than those for many other staff.
Impact now looks set to recommend industrial action to members over the issue.
Today around 10 junior pilots were understood to be receiving redundancy notices.
Meanwhile, the dispute is rumbling on over the redundancy packages.
Most staff at the airline were offered voluntary severance packages under the company survival plan, which was issued last October to keep Aer Lingus afloat.
This offered four weeks' pay per year and was available to pilots with less than 10 years' service.
Pilots who had been with the company for more than 20 years and were above the age of 48 were offered a lump sum of €63,500.
But the union claimed that the lump sum represented a worse deal than the voluntary severance package.
It was claimed that if the long-service pilots were to be offered the voluntary severance deal they would be entitled to more than €228,000.
But Aer Lingus said it simply could not pay out this amount.
Talks were held between Impact and Aer Lingus over the issue yesterday, but with no agreement the issue is heading towards industrial action.
Impact has not ruled out strike action unless a deal can be thrashed out. Bosses at the union have said they are still available for fresh talks.
A general meeting of all pilots who are members of Impact has been called for next Wednesday, where industrial action will be recommended if the talks are still in stalemate.
PA