Aer Arann, which operates between domestic airports in Ireland and flies between Ireland and the UK and Europe, has said it is seeking up to 100 redundancies as part of a cost reduction programme.
The airline says it wants to concentrate the airline more on charter flights and leasing its aircraft and crews to other airlines.
The airline says key routes remain unaffected but the company is changing its business model to ensure its long term future.
A spokesman said the 100 redundancies is a worst case scenario but would represent a reduction in staff numbers of around 25 per cent.
Currently the airline operates 12 aircraft on scheduled services and one plane on lease.
Aer Arann operates over 600 flights per week, across 40 routes in Ireland to the UK and Northern France as well as Amsterdam. Passenger numbers have grown from 12,000 in its first year to 1.1m in 2006.