Following a meeting between Aer Lingus management and unions this afternoon, the airline has announced that it intends to cut its operations by 25%.
Over 600 temporary staff will be let go, while the SIPTU union said it was clear the airline's plans would also affect permanent jobs. It believes up to 1,700 jobs are at risk.
After the meeting, called to discuss the impact of last week's events in the US on the airline's business, SIPTU called on the Government to take the ownership issue off the agenda for at least the next three to five years.
Seven aircraft will be taken out of the fleet - two transatlantic jumbos and five short-haul planes. The transatlantic services to Newark and Washington will be discontinued from October. The Stockholm route is also being axed and there will be fewer flights to London, Glasgow, Paris and Amsterdam.
SIPTU national industrial secretary Noel Dowling the union was 'shocked' by the information it received. He said it had been advised that a major cash crisis would hit the company by early next year.
Airline shares have plummeted since the attacks in New York and Washington, because of fears that falling passenger numbers, the shutdown in air travel in the past few days and the higher costs of new security measures will drain billions from the industry this year.
* Aer Lingus acting chief executive John O'Donovan is to take up a position as Bank of Ireland's chief financial officer before the end of this year.
He will replace Paul D'Alton, who is leaving to pursue other business interests. Mr D'Alton joined Bank of Ireland in 1991 - also from Aer Lingus, where he was group finance director. He was appointed a director of Bank of Ireland last year.
Mr O'Donovan has been acting chief executive of Aer Lingus since the departure of Michael Foley in June.
