Aer Lingus has said that the savings offered by the Irish Air Line Pilots' Association are not enough.
The level of savings offered by the IALPA fell significantly below what was required by the company.
Much of the suggested savings came from reductions in pilot numbers at the very top of the scales.
However, the level of pay cuts and pay freezes proposed from those who will stay with the company were insufficient.
Aer Lingus chiefs said other employees recognise the financial position of the company and are prepared to act accordingly but the IALPA is not.
Earlier, on RTÉ's Morning Ireland, IALPA President Captain Evan Cullen said 'he believed that Aer Lingus had their own agenda and that was why they did not accept their proposals.'
Chief Financial Officer resigns
Meanwhile, the number two executive at Aer Lingus has resigned his position and is also to leave the company board.
Chief Financial Officer Sean Coyle had only joined the airline from Ryanair 17 months ago, in August 2008.
A statement from Aer Lingus said Mr Coyle would leave his job at the end of the year by mutual agreement.
