Ireland's loss-making national carrier Aer Lingus looks set to suspend many flights on Friday amid an escalating dispute over rest times with its pilots.

A one-day pilots' strike planned for Thursday is likely to affect scheduled flights on Friday as well, the airline said late on Tuesday.

The extended stoppage comes as a blow to the ailing airline, which is thought to be losing about �1.5m a day as it struggles with a slump in passenger numbers in the wake of the 11 September attacks.

Most flights from Dublin, Cork and Shannon are due to be affected on Thursday, leaving about 17,000 passengers stranded.

Rota woes

Thursday's strike comes amid a dispute over reduced rest times for flight crews introduced last October as part of a new work rota aimed at improving efficiency.

Irish pilots' union Impact called for Thursday's walkout after seven pilots were suspended for refusing to stick to the new work schedules.

Aer Lingus said Impact's refusal to accept the new regime was "totally at variance with the views of the vast majority of Aer Lingus staff who have voted for and implemented change in accordance with the survival plan".

The airline's board of directors is due to meet tomorrow to discuss the likely impact of the strike.

Fresh crisis

Aer Lingus, heavily dependent on its lucrative transatlantic routes, was pushed to the brink of collapse after 11 September.

Some analysts expected the airline to follow European carriers Swissair and Sabena into bankruptcy.

Late last year, the company slashed ticket prices, axed several routes and announced plans to shed over a third of its workforce in a desperate bid to stay afloat.

The airline was already facing difficulties before 11 September because of a downturn in tourist numbers during the 2001 foot-and-mouth crisis.

Plans to privatise the carrier, which had turned a profit in 2000, were shelved last year.

No-frills Irish carrier Ryanair would benefit most if Aer Lingus were to collapse.