AER LINGUS'S share price closed down more than 3 per cent in Dublin yesterday after it announced that the deadline for acceptance of a controversial €97 million restructuring plan had been extended.

The airline yesterday acceded to a request to allow the Labour Relations Commission (LRC) become involved in the talks between management and unions.

Aer Lingus had set a deadline of today for completion of a consultation process with unions on its latest reform plan which involves more than 670 job losses.

However, the National Implementation Body (NIB), the main trouble-shooting mechanism under social partnership, yesterday urged the parties to avail of the services of the LRC in an effort to conclude talks successfully.

"The NIB believes that solutions need to be urgently found to the current difficulties," the body said in a statement. "In this regard, the body further recommends that engagement with the LRC should commence no later than Monday, 23rd November, and be concluded within the earliest possible timeframe.

"The NIB will review progress on all of the issues on Monday, 30th November."

Aer Lingus accepted the proposal from the NIB and said it was "focused on achieving agreement with all staff groups in the week ahead".

The LRC's involvement appeared to raise concerns in the market that a long and protracted negotiation might now take place, with the original proposals possibly watered down.

Aer Lingus announced its restructuring plan in early October. It told staff that it wanted agreement by today on the first phase - which involves 489 job cuts - or management would begin cutting routes. Compulsory redundancies have also been threatened.

The airline is also considering offers for a number of aircraft as it seeks to cut its cost base and bolster cash balances.

Aer Lingus had net cash of €399 million at the end of September. This compared with €653.9 million a year earlier and reflected a €107 million charge for restructuring costs and payments for two new A330 aircraft.

The airline has struggled this year. Its total revenues fell by 9.7 per cent year on year between July and September. The number of passengers flown was down 7 per cent to 3.08 million. Analysts expect Aer Lingus to lose more than €90 million this year. Shares closed at 58 cent in Dublin yesterday, down 3.3 per cent.