Aer Lingus and representatives of its pilots last night began talks at the Labour Relations Commission (LRC) aimed at resolving the dispute which had threatened to ground the airline's fleet for two days this week.
The talks commenced just hours after the Irish Airline Pilots' Association (Ialpa) branch of the trade union Impact suspended the planned 48-hour stoppage by Aer Lingus pilots over the pay and conditions to be offered to pilots recruited for its new base in Belfast.
The talks came as Ryanair confirmed it had increased its stake in Aer Lingus in recent days to more than 29.4 per cent, overtaking the Government (which holds 25.4 per cent) as the company's largest shareholder. In a statement following the stock exchange announcement yesterday, a spokesman for Ryanair said the move will make it easier for the other large shareholders to oppose Aer Lingus's plans to move the Shannon to London Heathrow route to Belfast.
Ryanair, which flies to three destinations from Belfast City Airport, has been a vocal critic of the proposal and last week requested an extraordinary general meeting of Aer Lingus shareholders to try and have the decision reversed.
The Government and the Employee Share Ownership Trust (Esot), which holds 14.4 per cent, are the second- and third-largest shareholders.
Ryanair's stake has forced Aer Lingus to review its cost base. Ryanair's recently increased stake does not significantly alter its ability to influence major decisions at Aer Lingus, but it reinforces Ryanair's position as a powerful presence on the share register.
Ialpa said yesterday that the LRC talks would include discussions on the pay and conditions in Belfast - an issue on which Aer Lingus had previously stated it would not negotiate. Ialpa president Capt Evan Cullen said that, based on documentation received from Aer Lingus, it believed the airline had changed its position. However, Aer Lingus said it had not altered its stance.
Meanwhile, Aer Lingus said it would offer a full schedule of short-haul flights today and tomorrow, following the suspension of the planned strike. A small number of long-haul flights have been cancelled: the 10.30 EI105 Dublin to New York and 17.40 EI104 New York to Dublin today; and the 11.50 EI123 Dublin to Chicago and 16.20 EI122 Chicago to Dublin tomorrow.
Anyone who was due to travel but cancelled because of the strike may rebook their flights without charge. Alternatively, Aer Lingus said they can present themselves at check-in. Passengers are advised to check in at least two hours before departure for short-haul flights and three hours for flights to the US and Dubai.
Aer Lingus said it will not compensate passengers who made flight arrangements on other airlines to avoid the threatened strike.
A number of passengers said they had spent considerable sums on flights with other airlines after cancelling their tickets. However, Aer Lingus said it had no obligation to compensate passengers because the strike amounted to an "extraordinary circumstance" exempting it from EU regulations.
A spokeswoman pointed out the airline had offered affected customers a refund if they cancelled tickets and also allowed passengers to make new bookings at no extra charge.
Meanwhile, flights for today and tomorrow to Heathrow and other destinations were selling yesterday for as low as €1 before taxes on the airline's website.
Taoiseach Bertie Ahern yesterday told a western development group that the Cabinet would consider a range of options to support airline connections to Shannon. However, he did not give any indication the Government would seek to persuade Aer Lingus to change its plans.