Dispute grounds Aer Lingus

The stirke action is predicted to cost Aer Lingus 40 million euros over the weekend

DUBLIN, Ireland -- Mediation talks are being held between Aer Lingus bosses and union chiefs in an effort to end to a standoff that could threaten Ireland's flagship national airline.

Only 15 percent of Aer Lingus' passengers managed to catch their flights during a one-day strike on Thursday but the airline is threatening to cancel all journeys indefinitely until a solution is found.

About 100,000 passengers are expected to be affected during the weekend, at an estimated cost of 40 million euros to the airline.

Staff went on strike over the implementation of new work rosters which they say are impractical and potentially dangerous.

Seven pilots who refused to comply with the new work pattern have been suspended while the airline has also stopped all pilots' wages in response to the strike action.

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Aer Lingus says the rosters argument is a "red herring," adding that staff must "face up to change" following the September 11 downturn in business.

Members of the pilots' union Impact and Aer Lingus are to hold talks in Dublin with the national arbitration service, the National Implementation Body, in Dublin on Friday.

The pilots have already lost one arbitration vote on the issue, but have ignored it, CNN's Jim Boulden said.

Twenty pilots turned up for work on Friday but were told by management that they would not be flying.

Noel Dowling, National Industrial Secretary of the trade union SIPTU, which represents ground staff at Aer Lingus, said: "There is a deep fear amongst our members now that the result of all this will be the complete collapse of Aer Lingus."

John Dunne, Chief Executive of the Chambers of Commerce of Ireland, told the UK's Press Association news agency: "If the national airline collapsed that would be catastrophic for the Irish economy, I do not think there is any other word to use."

Budget airline Ryanair has increased the number of its flights between Dublin and London to replace the cancelled Aer Lingus services.

Aer Lingus Corporate Affairs Director Dan Loughrey, added: "We are not gambling and we are not engaged in a high-stakes game.

"This is not about roster details, that has been a red herring for the past number of days. The issue we believe is about a failure to face up to change.

"We have no interest whatsoever in seeing the airline close."

The number of visitors to Ireland was down by 400,000 after September 11 and the general economic downturn, Paul O'Toole, Chief Executive of the cross-border Tourism Ireland body said.