Aer Lingus has formally acceded to a request from SIPTU to withdraw all proposals to "outsource" some of its activities under the company's viability plan.

The union was concerned at the threat this posed to areas such as catering, cleaning and baggage handling. A company spokesman confirmed it had agreed not to discuss outsourcing under the viability plan. He said it had never formally been put on the agenda. Welcoming the decision yesterday, SIPTU national industrial secretary Mr Noel Dowling said "it paves the way for the opening of negotiations". He added that "since management and unions will now be engaged fully in talks to save the airline, the Government would ultimately be expected to ensure resources were adequate to facilitate the conclusion of an agreement to save the thousands of jobs directly and indirectly affected".

He described the Government's interpretation of EU rules on public investment as "unduly conservative".