Agreement has been reached on pay and working conditions between Aer Lingus and around 2,000 SIPTU members that will see the company speed up its aircraft turnaround times.
The accord will see staff get both pay increases due under the new national wage agreement, Sustaining Progress. They will also have overtime rates restored to double time from time and three quarters.
In return workers are obliged to accept more flexible working arrangements including procedures to increase turnaround times.
Fast turnarounds are central to the strategy of offering high volumes of cheaper flights making the move significant for Aer Lingus, which almost went bankrupt two years ago.
Since then it has cut costs by euro;235 million as part of its emergency rescue package and decided to enter the low-cost sector. And earlier this week the company's chief executive, Mr Willie Walsh, said cost savings of a further €65 million was required.
It is also exploring the possibility of linking up with American Airlines with a view to accessing 50 routes in the US.
"Aer Lingus had budgeted for a €27m deficit but returned a profit in excess of €70m for the year gone ... These terms have been more than earned by our members' contributions and sacrifices for the turn around of the Company in 2002," said SIPTU national secretary Mr Christy McQuillan.
Both parties have also agreed to explore a new industrial relations model.
Workers will be balloted on the proposals early next month.