US airlines have received aid which has placed Aer Lingus at a competitive disadvantage, given its reliance on the US market

John McDonell, SIPTU union

Aer Lingus is losing two million Irish pounds (�1.56m) a day.

The state-owned airline has already announced plans to lay off 2,000 people and cut its flight operations by 25%.

But a state bail-out has been ruled out by the European Union, despite persistent lobbying from the Irish government.

EU rules prevent governments from subsidising companies they own, on competition grounds.

Help needed now

The Irish government said last week it was seeking a buyer for 35% of the company.

Ahern: under pressure

But without immediate help, unions warn, Aer Lingus will collapse.

Union officials will meet Aer Lingus chief executive Willie Walsh on Thursday to be briefed on the job cuts plan.

The airline is reportedly planning to sell two Boeing 737 jets to cover �40m redundancy costs.

Unions are concerned that sacked employees will be short-changed by the company, which had previously indicated it could not afford the redundancy bill.

More commitment

A delegation of union leaders is also due to meet Mr Ahern on Wednesday evening.

The union bosses are expected to call for greater commitment to saving the airline, which employs 6,300 people.

John McDonnell, general secretary of Ireland's largest union SIPTU, said: "We need to resolve this situation in the next couple of weeks if the airline is to continue in existence."

Mr McDonnell said private investment was unlikely while the question of redundancy payments was hanging over the airline.

Strategic importance

"US airlines have received aid which has placed Aer Lingus at a competitive disadvantage, given its reliance on the US market," Mr McDonnell added.

He also stressed Aer Lingus' strategic importance to Ireland.

Aer Lingus relies heavily on transatlantic business but was already suffering a downturn in business before 11 September.

It has been locked in a fierce price war with low-cost rival Ryanair on European routes.

The Aer Lingus board is due to meet on Thursday.