A Dispute which brought Aer Lingus pilots to the brink of strike action is believed to be nearing resolution after indications that both sides will accept proposals being considered by the Labour Relations Commission.
Resolution of the matter could see the completion of the Aer Lingus rescue plan developed after the State company faced closure in the wake of the terror attacks on the US last September.
The Labour Relations Commission is understood to be considering two reports - on work practice changes, and on the number of pilots required given the reduction in the airline's schedules.
It is understood that Aer Lingus has indicated that the outcome of both reports meets the objectives of its survival plan.
Work practice changes have already been subject to arbitration and agreement is believed to be near. The report on staff levels, by industrial relations consultant Mr Phil Flynn, is thought to have been submitted in recent days.
An official of the pilots' union, IMPACT, Mr Michael Landers, said: "We will have to analyse it in detail but on an initial examination it seems to hold out the prospect of avoiding compulsory redundancies among Aer Lingus pilots. It also puts up the opportunity in time for the re-engagement of cadet pilots made redundant last November."
He added: "This bears out IMPACT's repeated assertion that the alleged pilot surplus in Aer Lingus could be dealt with other than by compulsory redundancies."
The report on staff levels is understood to address the future of 86 pilots. It is dependent on the airline's recovery according to current projections.
It is understood it says that 27 senior pilots should be allowed to retire after improvements to their pension provisions.
The report is also understood to propose putting 30 pilots on unpaid leave. It is thought the report proposes that a further eight positions be subject to part-time hours. Seven pilots are understood to have already left the company and one has been promoted into management. The remaining provisions propose restructured rostering arrangements.
Where insufficient numbers of pilots take up the changes, it is thought that the report suggests sending pilots on compulsory unpaid leave with pension contributions kept up. Such people would be deployed again at their current grades as demand required.
The report suggests that 44 cadet pilots let go last year be rehired as vacancies emerge.