Aer Lingus today vowed to cut costs by pushing for more flexible working arrangements as the airline moved again to ward off Ryanair's takeover bid.
But the airline's management insisted jobs would not be axed without agreement from workers.
The airline had been obliged by the Takeover Panel to detail staff-cost savings referred to in its defence document advising shareholders to reject the Ryanair takeover bid.
Under the plan, the board of the recently privatised airline will bring in new staff contracts, simplify pay grades and press for standard overtime arrangements for all employees.
They also plan to renegotiate contracts with airports and introduce a fuel efficiency plan.
The 12-step cost-cutting scheme was put to unions today.
Aer Lingus claimed that since 2001, when the airline was heading near bankruptcy, costs have been cut by 47 per cent, and management insisted they would build on this.
Chief executive Dermot Mannion said: "Aer Lingus has tremendous opportunities ahead to build on the strong platform we have put in place.
"We are resolute in rejecting Ryanair's wholly inadequate offer and planning for long-term competitive growth, servicing one of the most attractive aviation markets in Europe."
Ryanair had offered €1.48 billion for the company, and earlier this week the budget carrier turned up the pressure on Aer Lingus by taking its share-holding in its Irish rival to more than 25 per cent.
But Aer Lingus chiefs today reiterated their advice to shareholders to ignore the offer.
It is understood Aer Lingus are looking for savings of €25 million euro in baggage handling and other ground operations and cutbacks in their US offices.
But they are also looking at the prospect of opening a new base overseas, possibly in the US.
Unions are understood to be seeking assurances on jobs and Siptu said they believed the changes appeared excessive and officials would be seeking further clarification.
The 12 point plan labelled the Plan for Continuous Improvement involves:
- Reduction in airport costs through renegotiation of handling contracts for planes landing in airports where Aer Lingus has no ground staff.
- Fuel management initiatives expected to drive reductions in consumption.
- Renegotiation of third-party maintenance agreements, aiming to reduce significantly costs for outsourcing.
- Continued focus on increasing short and long-haul aircraft use.
- Discussions with Dublin Airport Authority to achieve efficiencies and common pricing across all users for landing charges and facilities fees.
- Delivery of further savings in distribution and sales and marketing costs.
- Introduction of new employee contracts in line with market standards.
- Simplification of pay grading structures.
- Rationalisation of overtime and shift payments bringing in standard agreements for all staff.
- Optimisation of airport staff working hours and cross functional flexibility.
- Improved aircrew productivity on long-haul.
- Consideration of new bases outside Ireland such as the US where long haul flights operate to.
Additional reporting PA