Management at Aer Lingus has started planning for compulsory redundancies and a reduction in its fleet after talks with unions broke down.
The airline has said it may ground aircraft, close loss-making routes and lay off more than 1,000 staff to give it a viable future.
In a brief statement this evening the airline said despite lengthy talks with unions representing pilots and cabin crew the sides remain too far apart.
“Therefore, with immediate effect a taskforce will be activated to begin the process of planning compulsory redundancies / fleet reduction.”
However, Impact, the trade union representing cabin crew at the airline, said talks are continuing at the Labour Relations Commission.
“Cabin crew has issued a cost reduction proposal to the company which they remain confident can meet the airline's cost savings requirements,” the union said.