Aer Lingus has warned that there is no way that the current level of pension benefits for staff can be maintained.
Management and unions are attending the Labour Court today in a bid to resolve the row over a €750m deficit in the joint Aer Lingus/Dublin Airport Authority pension scheme.
Last month, SIPTU called off a threatened strike to allow talks to take place.
The airline's Director of Human Resources Michael Grealy said today that the scheme, known as the Irish Aviation Superannuation Scheme, was in deficit and in a very difficult position.
He said the company was offering to make generous undertakings about future pensions but that whatever was agreed would involve a "break with the past", would have to be reasonable and obtain the approval of shareholders.
However, SIPTU official Dermot O'Loughlin, who represents ground staff, described the situation as incredibly serious.
He said that if the scheme were wound up now, people would be left with poverty in retirement.
Asked whether staff had any chance of preserving their existing benefit expectations, he said Aer Lingus was a company with €990m in cash which they wanted to give to wealthy billionaires.
He said giving some of that to staff to plug the pension deficit would go a long way to resolving the issue.
IMPACT representative Matt Staunton - who represents cabin crew - said that members were determined to secure pensions equivalent to 80-85% of final salary.
He noted that 93% of members had balloted to take industrial action if the pensions row is not resolved.
Solving the row is extremely important for Aer Lingus, the DAA and the Government. If it is resolved, the balance sheets of the DAA and the airline would be improved at a stroke.
It would also remove an impediment to the Government sale of its 25% stake in Aer Lingus.
However, an outcome from the Labour Court is not expected until after Christmas.
