Aer Lingus planes remain grounded

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

DUBLIN, Ireland -- Talks between pilot representatives and Aer Lingus bosses to end a potentially debilitating strike have entered their second day.

A meeting with the arbitration National Implementation Body on Friday failed to move the two sides towards an agreement.

Negotiations began on Saturday night at Dublin's Labour Court in front of the Labour Relations Commission in an effort to resolve the industrial dispute which threatens the future of Ireland's flagship national airline. (Full Story)

The bulk of fights have been grounded since a one-day strike last Thursday, with no imminent end in sight.

Tens of thousands of passengers have been left stranded as a result of the industrial action despite low-fare Ryanair increasing its London to Dublin service.

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Pilots are protesting at new work schedules but airline officials said the new rotas are necessary to stave off financial troubles during an economic slowdown.

After sitting for several hours there were no immediate signs of a breakthrough at the Labour Court.

Sources close to the talks revealed that Aer Lingus management and the pilots'

union Impact were bitterly divided and attempts to broker a peace could stretch throughout the Bank Holiday weekend.

But the need to resolve the deadlock is intense as the airline is losing two million euros every day the planes remain grounded.

Dire warnings have been given about the effect on Ireland's economy and tourism industry and another union, Siptu, which represents ground staff, said the dispute could destroy the company.

Pilots have been taken off the payroll and those arriving at work have been sent away. Seven have been suspended for failing to comply with the new work rosters.

The Labour Relations Commission was involved in the formation of a survival plan for the company last October in the wake of growing financial losses.

The new work rosters were a part of that agreement, which also saw more than 2,000 people taking redundancy.

Peter McLoone, Secretary-General of Impact, said his members wanted to return to work but "the depth of feeling on this is very strong."

The airline is expected to lose at least 130 million euros this year after an estimated 90 million euros loss last year.