The National Transport Authority (NTA) has said that it is not yet considering any action against Transdev beyond imposing fines for the days when the Luas service is not delivered due to strike action.
A spokesperson for the NTA described the ongoing pay dispute as deeply unfortunate and one which they want to see resolved as soon as possible.
However, when asked whether there was a prospect of penalties escalating beyond fines, the spokesperson said: "We are not there yet".
She declined to clarify in what circumstances the NTA might move to cancel the operating contract with Transdev for failing to deliver the service.
She noted that the NTA was also losing out as a result of the dispute as on strike days it would normally receive up to €150,000 a day in fare revenue.
While some of that loss is being recouped through fines of €100,000 per day imposed on Transdev, and from extra revenue on buses, they are still losing up to €60,000 per day.
The NTA has fined Transdev €1m for failing to deliver the service. The net cost to the company is €400,000.
Meanwhile, Luas drivers are expected to serve notice on Monday of up to eight extra strike days for the month of June.
The Dublin light rail service shut for the tenth time today as part of the long-running pay dispute at the company, forcing up to 90,000 potential passengers to make alternative travel arrangements.
Four more strikes are already planned for 13 May, 20 May, 26 May and 27 May.
SIPTU shop steward Richard McCarthy told RTÉ News that the additional strikes would vary in duration but could involve stoppages lasting up to 48 hours.
He said all strikes could be avoided if the company engaged reasonably with the workers.
However, Transdev continues to insist that the 23% pay claim sought by the workers is unaffordable.
A company spokesperson said SIPTU wanted a driver on €42,000 to move to €52,000 by 2019 - and to €55,000 when a bonus was factored in.
She said additional strikes would bring nothing but further misery.
Transdev Managing Director Gerry Madden earlier warned that the mounting cost of the dispute is diminishing the pot available to settle the drivers' claims, so the next offer could be even lower than the 13% currently on offer.
Drivers have lost wages and a 6.5% annual bonus due to the industrial action.
Non-driver grades who have agreed a pay deal with Transdev are either on lay-off today, which means they will not get paid, or have taken annual leave.
A spokesperson for Minister for Transport Paschal Donohoe said: "It is up to both sides to work together to narrow their differences and find a resolution to this dispute, which continues to negatively impact commuters.
"As previously stated, any resolution cannot increase costs to the taxpayer, must deliver sustainable wage rates that do not lead to higher commuter fares and must respect the work and roles of the WRC and the Labour Court."