THE board of Aer Lingus has met to consider plans for the future of the State owned airline and its budget for 1997.

A spokesman said a wide ranging agenda was considered at yesterday's meeting, but declined to comment on any decisions taken. He said the board "revised an update of its business plan prepared by management".

He declined to disclose any details of the plans. Other sources have told, The Irish Times that plans have been formulated by a management/union group to increase revenue, cut costs through a reduction in overtime and changes in work practices and increase the numbers employed.

The company spokesman insisted that the concept behind the Aer Lingus Express (ALE) project had not been abandoned.

The project was aimed at finding ways to reduce unit costs in order to make unprofitable routes profitable, he explained. These are mainly the eight British regional routes where Aer Lingus is in competition with the low fare operator, Ryanair.

The ALE project will be part of the new Aer Lingus Commuter division.

The ALE project was widely interpreted outside the airline as a move towards a low cost, no frills operation on the short hop commuter routes. The spokesman insisted this had never been the intention.